Tuesday, June 24, 2014

WHAT’S THE BUZZ, TELL ME WHAT’S A HAPPENNIN’ - TUESDAY EDITION


* Jim Blankenship talks about “The Designation Everybody Should Be Aware Of” at GETTING YOUR FINANCIAL DUCKS IN A ROW.

That designation is your beneficiary – both primary and contingent.  Jim reminds us -

It’s important to review and if necessary update your beneficiary designations ion your IRAs, 401(k), 403(b), life insurance and other savings and brokerage accounts.  This is especially important if you’ve recently had a divorce, or your primary beneficiary has passed away.”

* THE SLOTT REPORT explains “What is Compensation for Making an IRA Contribution”.

* Russ Fox reviews the recent testimony by the new IRS Commissioner before Congress regarding the IRS scandal and tells us about the proposed “The Dog Ate My Tax Receipts Act” in his post “I Don’t Think an Apology Is Owed” at TAXABLE TALK.

* A tweeted “Tip for Tax Cheats” from @SamAntar (of “Crazy Eddie” fame) -

If the IRS audits you and subpoenas your emails, explain that they were lost in a computer crash. They'll understand.”

* Kelly Phillips Erb, FORBES.COM’s TaxGirl, addresses “Raking It In At Summer Yard Sales” and answers the question “Does Uncle Sam Get A Cut?“.

In my opinion, more often than not yard or garage sales are really not worth the potential for agita inherent in the activity.  As I have said before, do you really want the great unwashed masses tramping through your yard or garage, and possibly your house as well? This activity usually wastes at least a full day and in the end you never get what your stuff is really worth. During the last hour of the sale you often end up almost giving away what is left just to get rid of it.

I believe a better idea, if you are able to itemize on Schedule A, is to donate your unwanted, but still usable, items to a church or charity. With this method you may ultimately end up with about 1/4 to 1/3 of the current market value of the stuff in your pocket (depending on your federal and state tax brackets) – which is probably not much less than you would end up in a yard sale anyway – you avoid the agita, and you get to help out a needy cause.

Earlier this year I discussed “Deducting Non-Cash Contributions” at MAINSTREET.COM.

* Kay Bell reminds us that “Taxes Matter in Retirement” at her BANKRATE.COM blog.

TTFN

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