THJ TAX Tips - 2012 Income Taxes

March 19, 2013

WINTER 2013

 

VOLUME XXXI, NO 1

 

1099 filers: I must have all information no later than January 15th, 2013 for a  Timely filed form.
Mailed returns cannot be guarantee a return if not received by March 15, 2013.
EFILED: Is delayed until January 30th, 2013 (2012 taxes) due to the Fiscal Cliff.

 

Welcome to a New Year,  and the continued Administration, President Obama!  For months, Politicians negotiated to find a compromise to prevent the country from going over the so called FISCAL CLIFF, which would mean automatic tax increases and spending cuts if a compromise was not reached by January 1, 2013. On December 31, 2012, the Senate3 came up with a compromise and voted 89-9 in favor of the bill.  Less than 24 hours later, the House voted 257-167 in favor of the senate bill.  The President signed it into law on January 2, 2013,  The new law temporarily prevents the U.S. Economy from going over the FISCAL CLIFF. [The taxbook news 1/8/2013]

 

Our Nation is slowly turning around.  It can certainly Split back into a Recession if our leaders can not agree on things.  Continued RECESSION, and the question, “When will things get better?”.  The Euro problems gaining in Europe is getting worst!  Somehow it is very similar to the 1932 2nd Recession “Punch” that started us on the road to WW II.

 

Our economy has suffered from the Housing crisis, decreased production (We make nothing), Banking issues. Now, a big crisis is looming in the Education Loans.   Deflation, Stagflation. We all might want to look at Japan’s Economy for the last 10 years, and how it has changed living within those borders.  Many regulations were not enforced.  What is new will be the increased enforcement of Tax laws, and those enforcement actions will fall on you!  Expect your preparer to not only ask questions, but for you to have prove those deductions to him/her.

 

Interest rates are at an all time low, and will continue to be there for at least until 2015.  Excellent time to refinance to the low 3 percentile.   Automobiles, there are changes taking place within the manufacturing of vehicles, many changes will make these newer Automobiles worthless by design. Recommendation, keep your present car as long as you can.  Pay off debt first (credit cards, loans, auto) attack House mortgage last (or consider refinancing now).

 

A fundamental question for our generation is whether we are committed to proving the quality and variety of education of our CHILDREN. The major changes in the Horizon will affect the way we look at what we spend with out budget. Defense Department,  just as a short review with 7 fewer F-35's (total approved 2,443), We could provide a handheld tablet computer for every first-grader!

 

We know well that Social Security need an overhaul.  But what the systems needs is more adult supervision.  Jobs, the real job crisis is the between those jobs offered now and the skills we have.  Visit a Country such as Thailand, and you would be amazed at infrastructural improvements.

 

Our Navy may be shrinking in numbers, 1991 totals of 529 ships 15 carriers and 121 nuclear submarines.  Today, the Navy has 285 ships with 11 carriers and 71 submarines. Is the Navy still number 1?  Or does it need to launch a few more boats?
And of course the fundamental question of how are we going to pay for these new toys?  Do we really need 11 aircraft carriers when the next largest Navy has 1?

 

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