Thursday, November 4, 2010

your quick tax education

This post has nothing to do w/ me personally, my adventures of awesomeness, my kick-ass NFL gambling record (68% in case you're curious), the best holiday ever (a.k.a Halloween), or my upcoming trip to Vegas.  None of it.  This post will educate my friends and family members about what could possibly happen w/ your taxes for 2011 (April 2012 filing) barring any shocking legislation from Congress.

Most of you have probably heard the term "Bush Tax Cuts."  This comes from 2001 and 2003 tax laws that lowered taxes for all Americans and took the capital gains and dividend tax rates down to 15% (and 0% in some people's cases).  Capital gains for most people come into play on stock sales/gains.  The top tax rate was lowered from 39.6% to 35%.  A 10% bracket was installed.  The current tax rate system progresses as follows - 10%, 15%, 25%, 28%, 33%, 35%.  As you  make more money, you progress into a higher rate.  For example, the 10% bracket for a married couple is used on your first $16k of income, then 15% rate is used on income between $16k & $68k, and so forth.  These rates benefit all US taxpayers. 

In addition to the lower tax rates, the Bush Tax Cuts also installed various deductions and increased tax credits for people, most notably the increased Child Tax Credit from $500 up to $1,000.  These credits are straight reductions of your tax liability and typically increase your refund.  Most middle class families get a benefit for these child tax credits (they get phased out at approximately $150-160k of gross income).  So for the majority of American families, these credits decrease the amount they owe or increase their refund.  There are numerous other deductions and credits that the Bush Tax Cuts increased or extended that for the most part apply to 90% of American taxpayers (excluding the wealthy mainly because they get phased out due to income limitations).

The Bush Tax Cuts also increased the estate tax exemptions amounts, saving normal families millions of dollars in estate tax. 

Now, fast forward - these cuts expire at the end of 2010.  If Congress does nothing, the Bush Tax Cuts go away and everything reverts to what it was pre-Bush Tax Cuts.  Most of you have probably heard some of this in the media and how Obama wants to essentially eliminate these cuts.  Without getting into too many details, the basic way this is spun to the public is that the lower 15% capital gains rate will go away for people who make more than $250k.  The "tax argument" is being spun to be a rich vs poor argument.  Tax the rich more since they make more $$$ - i get it, it makes sense and does have validity, but THERE IS A HUGE PIECE YOU AREN'T BEING TOLD.   You don't know what you don't know and this is why many people are going to be in for a rude awakening in the winter/spring 2012 when they file their 2011 taxes and see that their typical refunds have been slashed in half or have disappeared all together.   Bear w/ me now.....

If Congress does absolutely nothing or they only extend the capital gains 15% rate for people under $250k, the Obama administration is going to spin it as "See, we are raising taxes on the rich."  However, what you are not being told is that the tax bracket rates for all Americans is going to raise. 

That 10% rate bracket - GONE.  The lowest rate will be 15%.  So you're already missing out on a 5% savings for the first $16k of income (or $800 is what your refund will shrink by) Next rate will be 28% - no 25% rate, so another 3% increase.  Oh, and those lovely $1,000 child tax credits for kids under the age of 16, those will decrease to $500/kid. 

Let's say we have a young married couple - husband makes $50k and wife works part-time and is still in school.  They also have a kid.  Their refund is going to shrink from say $2,000 to maybe $700.  A $1,300 difference!  For a young family that only makes $50k annually, $1,300 decrease in cash flow is a fairly big deal.  (This example is hypothetical and there are many other factors that could come into play here, but you get the picture)

Here's the point - don't be fooled when you hear that taxes are only going to go up for the rich.  The message you aren't hearing is that credits and deductions are going to be reduced/eliminated as well as tax rate brackets may disappear....   Deductions being slashed and credits being reduced is also known as "A TAX INCREASE," but again, that message isn't being portrayed.  Everyone's taxes are going to go up, but portraying that message doesn't win Presidential elections.  The stimulus & health care reform packages have to be paid from somewhere and the the rich already pay 90% of this country's taxes. 

There has been recent rumors surrounding what Congress may or may not do, and w/ the recent election, who knows what will happen.  It's possible they could extend the Bush Tax Cuts for another few years, which would postpone the scenario outlined above.  I'm not even going to get into that here - way to many variables there. 

If you liked this post, let me know and I can try to provide more similar to this into my blog routine.  With the end of the year approaching and the House being turned back over to the Republicans, we could be in for some interesting tax legislation in the next few months - or absolutely no activity at all because Congress won't be able to come to an agreement on anything.

BC

Wednesday, October 13, 2010

here we go

So a quick update on my life.  Had a sweet skin infection in early/mid September which shut me down for about 3 weeks.  Seriously, one day i could barely walk to due to the "area" being inflamed and extremely painful - not to mention it was in a fairly uncomfortable place on my leg/thigh.  Luckily my kick ass immune system finally beat it, with the assistance of some high dosage antibiotics and awesome pain pills.  This is the really the first time in my adult life that i've had something seriously wrong w/ me (outside of minor rotator cuff issues).   3 weeks w/ no alcohol, no physical activity, and basically no fun. 

But now i'm back.  Took Dad to the Colts game against Chiefs - his first experience at Lucas Oil Stadium...i think he enjoyed it, even though the game was a little dull....19-9, how many times do you see that as a final score for the NFL game?  

Heading to Georgia on Thursday (10/14) until Sunday for the annual "Act Like I'm Still in College Trip", which involves hanging around college bars on the beautiful campus of the University of Georgia, drinking way way way too much, tailgating for an SEC game, eating too many grilled/fried foods, and all foolishness that comes in between those things.   Convinced Andy to go w/ us this year, so he along w/ Scott making his second trip will hit the road (9 1/2 hour drive) down to Athens Georgia to meet up w/ my high school buddy, Craig Hisey.  Always fun! 

Gambling - been fairly decent the past month.  Great start to the NFL season, going 7-3 through 5 weeks.  Been playing a little more online poker lately w/ some of the free time I had due to my infection and that's been steady also. 

Final notes - season 3 of the Sons of Anarchy (FX) and the new Boardwalk Empire (HBO) have been awesome.  I've also been watching FX's new show, Terriers, and that's been good as well.  Very excited the MLB playoffs have started - already some great drama/moments!

My final thought - this song has been in my head for days for some reason, so naturally I felt like I needed to see the video, as well as share w/ all of you  Seriously, the hair styles in the 80's are fantastic - i really think I missed out since I was in my 1-9 years during that decade.  And doesn't the lead singer look a little like a young Paul McCartney or is that just me? 

Tuesday, September 7, 2010

Cook's 2010 NFL Predictions

One of the best times of year.  The weather is starting to get a little cooler, Kirk Herbstreit is on TV every Saturday morning for College Gameday, Notre Dame will most likely disappoint me, and the start of the NFL season.  With the NFL comes many glorious things like fantasy football, trash talking w/ friends, marathon Madden video game sessions, gambling, and going to many Colts games. 

Without further ado, here are my NFL predictions for 2010
  • Brett Favre starts 10 or fewer games this year
  • The Vikes go 8-8 or worse
  • Chris Johnson rushes for over 2,000 yds, becoming 1st player to achieve that feat twice
  • The Colts once again achieve at least 12 regular season wins (for the 8th straight season, i think)
  • AFC Division winners - NE, Baltimore, Indy, San Diego.  wild cards - Tennessee & Miami
  • NFC Division winners - Dallas, GB, NO, SF.  wild cards - Atlanta & Washington
  • Aaron Rodgers wins the MVP
  • The Raiders finish w/ a better record then the Broncos
  • The Texans finish w/ a better record then the J-E-T-S
  • Detroit wins at least 5 games (2 last year)
  • Colts & GB play in the Super Bowl....Colts winning
Once again i'll be doing my annual betting, sticking to 2 games per week.  I didn't do quite as well last year as I did 2 years ago, but still finished above 50% going 27-23 on the season.  Looking to get back up to above 60% again this year.   

Big weekend coming up w/ the ND/Michigan game.  I'm going 42-34 ND.  Wake Up The Echoes.....

Monday, August 2, 2010

it's been a month, almost

Long time since my last post, but that's OK.  I'm over the 90:1 almost win, courtesy of Uruguay in the World Cup.  So what did July bring?  Hmmmm...

Best weekend was probably the Jimtown Outing weekend.  Andy, Dave, and Scott joined me this year.  I'm fairly certain they had a good time.  36 holes, free beer and steak, along w/ great weather made for a great day!  I shot an 82 in the morning round, while the others didn't play their best...  Andy even got a Hacker Trophy for being the worst golfer there (141 i think).  However, we stepped it up in the scramble, mainly on the putting green.  we shot 9-under to win the C Flight...and beat my Dad's foursome by like 6 shots, so that's always goal #1.   I've played in probably 10 outings w/ those 3 guys and this was by far the best we've ever putted.  we hit at least 3 birdie putts of 20-25+ feet, including yours truly knocking in a 50 footer to top the round off. 

Andy and I went to Cincy last weekend to see Gaddis along w/ the intention to scalp tickets to the Reds game against the Braves.  Normally tickets to the Reds are easy to come by as they never sell out...even when they are first place.  Of course, they sold out this series (1st of the year), so we ended up just going to a few bars and hanging w/ Gaddis.   Good times though, great to catch up w/ my former college roommate! 

Golf has been fairly decent too me this summer.  Although shooting a 96 at Oakmont doesn't sound good, trust me, i played decent and was happy w/ that.  I've fired two 82's the last two rounds I played (Cedar Lake @ Jimtown Open, and The Fort).  I also shot an 82 at West Chase back in June.  An 88 at Coffin two weeks ago as well, so I can't complain.  To top it off, i have 4 golf outings for work in the next 3 weeks, and the Ritter Open later August, assuming tennis doesn't get in the way.   Speaking of tennis...

Since my winter tennis league team won our league, we've qualified to advance on to try and win the state title.  We have two matches next weekend to see who represent Central Indiana (and Southern IN) in the state title match.  If we can advance from that, we'll play the representative from Northern IN for the state title the weekend of August 14th.  That's where my team lost last year to a team from Ft. Wayne...so looking to improve upon that. 

It's almost NFL season, so that means my NFL Preview column, including my annual betting columns/advice for those who partake in those actions.  I'm sure some fantasy football items will make it into the columns as well. 

Until next time, a nice video for you.  This is an embarrassment to all of us who as kids used to do awesome tricks jumping out of swings   

Tuesday, July 6, 2010

90:1...almost

Like my buddy Scott, I could dedicate this whole post to the World Cup and how the U.S. did fairly well despite the officials trying to screw us in every which way possible because they are obvioulsy afraid of our impending dominance of the world's sport.   My only other thought on the World Cup is that I was so close to getting the best gambling payout of my life....90 to 1 odds on Uruguay to win the whole thing.  Unfortunately they went down in the semi-finals today.  even though I didn't bet a lot of money, at 90:1 odds, even a non-CPA can figure out that it's a nice payday.  As with most things, gambling makes 99% of things more interesting! 

Alright, been a few weeks since my last post. Highlight of those weeks was my Myrtle Beach w/ mom's side of the family.   The trip was very fun.  Despite that this is the first vacation that i've taken in like 5 years w/o one of my buddies going w/ me, I was able to keep myself entertained by playing w/ the 5 kids under the age of 10, my step-brother and his wife (Tad & Kimberly), along w/ the Heitkamps, my mom & step-dad, and my Aunt Pam & Uncle Terry.  My 17-year old cousin Nick and I made the drive out to Myrtle, just the two of us in 12 hours flat.  A fairly easy road trip.  Most days went something like this... wake up around 8:30-9.  at beach by 9:30.  come in around noon and eat lunch/start drinking Bud Light.  back out to the beach around 1:30 and remain there until 4:30-5.   Continue drinking.  Dinner, then an array of card/board games along w/ some Rock Band sessions.  The older adults would normally be in bed by 10:30-11, while us younger adults would play more cards.  I also won our big round-robin, 2-night, Euchre tournament.....never a doubt!  (except for when I was in 2nd to last place after the first night).  

I tried to load some pics but for some reason can't get them to attach to the posting...not sure what the problem is since i've added pics in the past.  Tawnya Keitkamp and Kimberly Frahm have a lot of good pics from the vacation, so you can check their facebook pages if you are really interested. 

Let's see.  i went to Elkhart for the first time since Xmas for July 3rd-4th.  Heather was home so I got to see her.  Hung out w/ a few cousins most of the day on Satruday, then spent some time up at my Aunt Geneva's lake cottage on Sunday before making the car ride back.   Sunday night was one of those disasterous successful nights.  Craig, Buell and I ran up a $270 bar tab in about 5 hours celebrating America's b-day.  Ummm, Monday, July 5th was essentially a wasteful day until one of my water heater pipes decided to spring a leak.  That cost a few dollars today to get repaired, but now I have hot water again. 

Summer tennis league is going OK.  My team is 3-4, but personally i'm 4-1 in my individual matches, w/ my only loss coming in a 3rd set tie-breaker.  We've lost some close matches as a team...could easiliy be 6-1, but oh well.   I've been very active this summer playing basketball (Monday), softball (Tuesdays - although doesn't start for me until next week), tennis (Wednesdays) and kickball (Thursdays).  Kickball is fairly interesting...a lot harder to score runs then you would think.  Much more strategy playing against adults then what I remember playing as kids. 

Also, since my last post 3 weeks ago, the Cubs are now 99% officially out of the NL Central Race.  until next time (or year in the Cubs sake...)

Tuesday, June 15, 2010

Summer prelude

Sorry it's been a while since i made my last post, but it's been busy couple of weeks.  A little bit of traveling, some work, and trying to survive the onslaught of rain we've had recently have taken up my time.

Many of you know that I made my trip to Oakmont Country Club (Pittsburgh) a week ago.  The experience & day was fantastic!  I took my step-brother, Tad, with me for the journey.  The golf course/club house was unbelievable.  We were in awe the majority of the time we spent at the course.  Everything just had an aura about it, even down to the men's locker rooms (old wood/wicker lockers, no AC, old school bathrooms).   Very cool experience and honestly probably one of the nicest things anyone has ever done for me.  We both broke 100 and each pared the hardest hole on one of the most difficult courses in America!  Mr. Bob Gallagher is the gentlemen/member that hooked us up w/ our round.  I can't thank him enough.  Tad is even sending him a piece of his ceramic pottery to thank him.  All I could thank him w/ was a kind note...but then again, what do you get a man w/ his achievements & successes in life?  He's a former partner of the largest public accounting firm in the world, then started his own firm which he built into a successful company.  Once he 'retired' he has formed his own consulting firm, mainly leading national education conferences for accounting firms.  In addition, he's appeared on Oprah, is an adjunct professor at the Univ of Pitt, and founded a girls basketball clinic/camp in Pittsburgh, and from all accounts has touched many lives in a variety of different facets.  I'm fortunate to have made his acquiantance...amazing what joining the instructor of a national conference for a beer after his presentation can lead too! 

Heading to Myrtle Beach on Saturday, June 18th for a week.  Along on the trip will be family members from my Mom's side of the family including the Heitkamps, Frahms, my mom & step dad, my Uncle Terry (mom's brother) and Aunt Pam (mom's sister) along with 5 children under the age of 10.  Nick (my cousin) and I will be driving down separate from everyone else, choosing to make the 12 hour drive in one day as opposed to stopping.  Should be good bonding time for us.  I'm looking forward to peering into the life of a 17 year old that apparently wants to go to Stanford! 

The trip should be fun.  We rented a 9-bedroom (i think, maybe 8-bedroom) house right on Myrtle Beach.  Personally, i'm looking forward to the sun, relaxing on the beach, some cold beers, family games/dinners, and golf!  Unfortunately one of the casualties of going on the trip is that I have to miss the annual Ritter HS Alumni Golf Outing, which I believe i've played in 8 of the past 9 years.  Since we won the Ritter Alumni Basketball League this winter, we were looking to be the first ever golf/basketball alumni champs in the same year (my facts on being first ever may or may not be true, but it sounds good).   Sadly, i'll have to miss the outing, as will Buell, so Scott will be playing w/ Andy, Matt, and Buck.  Scott has informed us that Even par is his goal....i feel bad for him. 

But the good news....Scott & Dave will be making their Jimtown HS Alumni Golf Outing debut this year!  I have convinced them to waste a one night of their lives in beautiful Elkhart, IN, and make the trip w/ me to play in my foursome.  I still need to get a fourth to round out that group. 

Looks like Andy & I will be going to Vegas the last weekend of July.  Unfortunately Dave can't make it that weekend and Scott now has a kid, so his life is basically over.  Rumor has it that our buddy Jeff Rabjohns (Indy Star Sports reporter) will be making the trip w/ us, along w/ maybe a mutual friend of Jeff's.  We'll see how that comes together, but I think Andy & I will go regardless. 

Hope the rest of you are having a great start to your summer!  Go USA Soccer...they may as well make a good showing since the World is watching.  I've actually enjoyed the World Cup and am looking forward to watching more of it over the next few weeks, even though I'm not the biggest soccer fan. 

Tuesday, June 1, 2010

Where did May go?

Holy Cow!!!  The month of May went by way to fast.  Since my last post, life has been fantastic.  Unfortunately my Oakmont CC trip was postponed to June 8th due to severe weather.  That's OK, i've been busy w/ the following:
  • Joined a basketball league w/ one of my co-workers up at the Monon Center in Carmel.  We've  played two games so far and I'm still getting acclimated to my new teammates.  Monday nights throughout the summer you can find me there
  • Went to Dallas May 21-23  For those who don't know, my sister also lives there.  Caught a Cubs/Rangers game (Cubs won in 10 innings!) and got to spend some quality time w/ the family.  It was great to see my Texas cousins & aunt/uncle who I don't get to see very often.  Plus add the fact that my Dad, Grandma, and another aunt/uncle were also in town, it made for a nice weekend. 
  • Learned that I will probably never use my sister's buddy pass again.  Flight was free (thanks sis!), however, my travel days were 9 hours and 11 hours, respectively.   Considering I was only gone for 60 hours total, not worth it in my mind. 
  • I turned 29! 
  • Have finally got out and played some golf.  played 4 rounds in the past 3 weeks.  Shot a 90 (in a monsoon) and 92 (on a course i'd never played before) in my first two rounds.  Came back and shot an 81 at West Chase last week, my best score by at least 4 or 5 strokes at that course.  Then played in a scramble at the fort last saturday. 
  • Indy 500 - normally that weekend involves an RV, 4 kegs, 20 lbs of meat, no showering, tents, and miscellaneous shenanigans.  However, this year we did not do that and decided to take it easy.  I actually had decided to boycott most race activities....that is until Marko called me and told me had pit row/garage passes for race day.  Needless to say I took him up on that.  Check out my facebook page to see those pics
Other news...the annual Indy CPA basketball tourney started this week.  My firm was lucky to get a first round W, squeaking out a close one.  I played decent in 1st half, leading us in scoring, but only scored 4 pts in 2nd half.  Luckily we got some good production from other players in the 2nd half to help lead us to victory.  We play again on Wednesday & Thursday.

Summer tennis league has also started.  Our team has played two matches, losing 3-2 in both matches thanks to our team having a 1-5 record in 3rd set tie-breakers.  I only played in one of the matches so far, winning easily.  Hope I continue to play that well in future weeks. 

Myrtle Beach in 3 weeks, then Vegas at the end of July...can't wait for both! 

In other gambling news, my group of friends that competes in the ESPN Streak for the Cash have now successfully turned it into a gambling event, combining some the theory behind "High Chicago" or "2/3rds" (variations of 7-card stud).  Leave it to us...., but as with everything else, gambling always makes it more interesting.   Speaking of gambling, is it crazy that i'm considering betting on the World Cup (see previous sentence about making things more interesting).  Somehow I let Gill talk me into Uruguay as a sleeper to make it out of pool play.  They are 100:1 odds to win the whole thing.  sounds like it's worth at least a $10 bet. 


Decided my next Elkhart trip will be 4th of July weekend, and then a quick trip on July 17th to play in the Jimtown Outing. 


No videos this post...i'm too tired