The continuation of the recession and still high unemployment in the year 2010 may be just the motivation that some individuals may need to muster up that entrprenurial spirit.  However, the question may arise with many on “How to be your own Boss?” 

The CNN Online Newsroom had a posting and video on this topic of How to Start your Own Business :

Check out the full story and video on CNN Newsroom:

http://newsroom.blogs.cnn.com/2010/01/07/be-your-own-boss-in-2010/

American Express announced Monday that it’s going to allow its Membership Rewards customers to pay their federal and some state and local income taxes using membership rewards points.

When the reward transaction goes through one of Amex’s preferred tax payment processors — either Pay1040 or Official Payments Corp. — the processor charges a 2.35% “convenience” fee. So, your American Express account will be charged for $5,117.50, then Amex will immediately credit the charge using points. You won’t get additional points for this exchange.

As a general rule, every 100 points is worth $1 on a gift card. Other kinds of reward exchanges are not as favorable, including this deal with tax payment processors Pay1040 or Official Payments Corp., where paying $1 to the IRS requires 200 Membership Rewards Points. At that rate, in order to pay off your $5,000 tax bill plus the “convenience charge,” you would need to have 1,023,500 Membership Rewards Points.

Read the full story at Walletpop.com:

http://www.walletpop.com/blog

As published in the Miami Herald Money Section -Sunday November 15, 2009:

Checkmates: Couples share money strategies

Three South Florida couples share their strategies for balancing finance and romance

Excerpt:

SHARED ACCOUNTS THE COUPLE: David Wrubel 39, CPA, and Yuladys Wrubel, 33 accountants, Miami Beach

 STRATEGY: This savvy pair of accountants is accustomed to itemizing dollar amounts. But when it comes to money in their marriage, they comingle every penny. Since tying the knot in 2003, the two have had both joint checking and savings accounts — and even share the real estate David owned before they met.

Sure, David earns more money heading up the accounting firm that also employs his wife. But Yulaeys takes on more of the child care responsibilities for their two young daughters. What’s more, she does most of the household bill-paying.

“We coordinate on an on-going basis about our finances,” David says. “We plan for the future together. So there are fewer surprises.”

While each has equal authority over their incomes, Yuladys admits to spending more liberally than David.

Even with the occasional splurge, the couple remains debt-free and Yuladys says she wouldn’t dream of banking without her husband.

WHY IT WORKS: A centralized system makes it easy to track spending and saving, Sherman says.

DOWNSIDE: Spending habits change over time, he says, and hopefully they’ll grow together.

Please read the full story in the Miami Herald at:

http://www.miamiherald.com/business/personal-finance/v-fullstory/story/1336791.html

…but not in the Sunshine State of Florida

With Federal Estate tax all but disappearing as a source of revenue for the US Treasury, State-level “Death Taxes” have now become an increasing new ‘surprise’ to be concerned about.

The Federal Estate Tax  exemption amount is currently at $3.5 million of net assets per individual and $7 million for a married couples.  Many families are often not subject to Federal Estate taxes since they simply do not have net assets above that exemption level.

However, most states that do have an estate or inheritance tax (or both) – have not raised the state exemption level to match the Federal level.  Therefore, many taxpayers who might escape the Federal Estate tax could end up getting ensnared in a State Death Tax on the estate or inheritance – or both!

Beside updating any existing trusts to maximize the State exemptions between couples in addition to the Federal ones that may exist in the documents already, many tax advisors are making suggestions to their clients on “where” to retire to perhaps legally avoid State level “death taxes” altogether. 

Seventeen states plus Washington DC currently impose estate taxes.  Eight states currently impose an inheritance tax on heirs.  The States of Maryland and New Jersey current levy both estate and inheritance taxes!  It is important to realize that even if an individual lives in a state that does not have a “death tax”, owning real property or assets in another state that does impose such taxes – can make an individual subject to such taxes in those states.

The State of Florida is one such state that does not impose either an estate tax nor an inheritance tax.   On top of not currently having a State Income Tax for individuals, and fantastic weather year-round, Florida still remains the “iconic choice” for retirement! 

Read the full story in the Wall Street Journal: http://online.wsj.com/article/SB125694593227919879.html?mod=rss_Today’s_Most_Popular

Online Retailers of All Types and Sizes Beware…You May Have a State Sales Tax Collection and Reporting Requirement for Online Sales to Certain States Such as New York!

If things were not already difficult for online as well as regular brick-and-mortar retailers this holiday season, online shopping will become more costly this holiday season due to new laws in New York, Rhode Island and North Carolina which will force these retailers to collect state sales taxes for the first time on purchases from internet retailers!

This is a direct reaction by many of these states that are already experiencing significant declines in tax revenues – to seek out new possible sources of tax revenues.  Internet sales are now becoming the “new frontier” for many states to consider what are being called “Amazon Laws” which require many online retailers to collect sales taxes even if they are based in another state and do not have a physical sales office in that state (which is the historical requirement that would make a company liable to collect sales tax in a state once they located a sales office or sales personal physically in a state.)  

This means that, until recently, if you lived in New York, and ordered something from a company located in Ohio, the company did not need to collect sales tax. 

A recent court case lost by Amazon.com in New York held up a law requiring the collection, remittance and reporting of New York State Sales Tax by Amazon for online sales made in that state Even though the company did not have a physical office in that state, merely since the company had over $10,000 in sales per year to residents of New York – even if these sales were made online!

Read the full story online in the Parade.com publication: http://www.parade.com/news/intelligence-report/archive/091018-states-push-for-online-sales-taxes.html

One thing that is usually certain in life, is that over time, prices generally rise overall.  This is certainly true of the costs of college tuition.  With the state of the current economy, it is common now to see prices dropping in retail stores, on new and used cars, etc.  However, you might notice that the one area that you won’t see  price decreases, even with the depressed economy, is for public or private university tuition!  This being the case, it would stand to reason that over time, whether there are good times or bad, the price of college and university tuition will continue to go up and up and up.

It would sure be great if there would be a way to lock in and pay approximately today’s tuition prices eighteen or so years from now instead of what they will be after they have increased each year – for the next eighteen years!  Well guess what…there is a way and it is called the Florida Prepaid College Plan. 

While Florida public universities are among the lowest cost in the nation – especially for Florida residents, their costs have increased approximately 400 percent over the last 18 years!  This means that the same $4000 of college tuition costs eighteen years ago now cost $16,000 currently.  

For private universities, an independent Section 529 plan may work as well. However, there are different plans in different states.  They all have different performance history.  You may not have to select a 529 plan from the same state that you plan to have your child attend college in that state.  Therefore you can generally select one state’s 529 plan and have the child attend college in another state – without being restricted to attend college in that same state.   Section 529 plans do not generally lock in tuition at current costs like the Florida Prepaid Plans, but they do allow to save tax-free toward college and university tuitions until used for those purposes.  The amount available for these costs can also depend on the performance of the investments held by the 529 plan. 

The Florida prepaid plan comparatively is only for Florida public universities in the State of Florida.  However, current plan terms allow contributions to be returned without penalty or applied to another child if the first child does not later attend a Florida public college or university. 

For more information on the Florida Prepaid College Program and its terms – which can change over time and based on when a child is first entered into the plan – please visit www.myfloridaprepaid.com

Read the full story on the Miami Herald website: http://www.miamiherald.com/business/personal-finance/story/1286862.html

For those US persons who will need to take advantage of the IRS Amnesty program – and especially the tax professionals who will be assisting them – there is a much needed reprieve in that the IRS extended the deadline for filing under this program. The original deadline was September 23, 2009. The new deadline for the IRS Amnesty Program to file FBAR forms is October 15th, 2009.

Read the full story on the Associated Press: http://hosted.ap.org/dynamic/stories/U/US_TAX_HAVEN_CRACKDOWN?SITE=TXKER&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2009-09-21-06-35-30

Addtional Related story from the Miami Herald: http://www.miamiherald.com/business/story/1245263.html