Gerald A. Ford 38th President of the United States; July 14, 1913 - December 26, 2006

Please feel free to click on the following address to see official information regarding the passing of our 38th president Gerald Ford this week in California
http://geraldfordmemorial.com

Following is a news article from one of the news services.

Posted on: Friday, 29 December 2006, 06:00 CST
Tributes to Ford Begin in California

By ALLISON HOFFMAN
PALM DESERT, Calif. - The formal mourning of Gerald R. Ford begins with a public viewing at church pulpit just feet from where he and his wife sat every Sunday after their White House years - "The President's Pew."
Ford's family was to have a private prayer service at St. Margaret's Episcopal Church on Friday before the start of a public viewing expected to draw thousands of people to the desert resort town 110 miles east of Los Angeles.
Former first lady Betty Ford, 88, and her four grown children were to receive his casket from a military honor guard at the church, where the couple began worshipping in 1977. Former President George H.W. Bush and his wife, Barbara, among others, joined the Fords there over the years.
Mrs. Ford will then accompany her husband's body across the nation for a series of ceremonies that includes two funeral services in Washington, D.C., and another in Grand Rapids, Mich., where he will be entombed Wednesday.
Ford died Tuesday at age 93 with his family at his bedside.
He assumed the presidency when Richard Nixon resigned in 1974 amid the Watergate scandal, but was defeated by Jimmy Carter in the 1976 election. The Fords began attending St. Margaret's after retiring to Rancho Mirage.
Tight security was planned at the church, with the entire campus locked down for Secret Service sweeps and surrounding residential streets blocked off. In a nod to Ford's Navy service, a sailor was deputized to fly the presidential seal from an ebony staff as Ford's casket is taken from the hearse.
People hoping to pay their respects to the nation's 38th president during the public repose will be shuttled to the church from a tennis center several miles away, and will not be allowed to bring personal items including cameras, cell phones, purses or flowers with them.
After arriving at Andrews Air Force Base on Saturday, the coffin will be taken to the Capitol in a funeral procession, then carried up the steps of the East Front of the House by a military escort.
It will then lie in repose in front of the House chamber and be carried into the Rotunda for a ceremony and public viewing before being moved to the National Cathedral on Tuesday for funeral services there.
Some of the most regal touches of a full state funeral are being bypassed, by request of his family and, most likely, according to Ford's own wishes.
In Washington, a hearse rather than a horse drawn caisson will drive Ford's casket to the Capitol. Fighter jets will do a flyover with a "missing man" maneuver only in Grand Rapids, where Ford will be interred on a hillside north of his presidential museum. He spent most of his childhood and practiced law in the city before representing the area in Congress for 25 years.
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Associated Press writers Jeff Wilson in Rancho Mirage, Calif., and Calvin Woodward and Laurie Kellman in Washington contributed to this report.
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On the Net:
Gerald Ford Memorial: http://geraldfordmemorial.com/

Source: Associated Press/AP Online

Buying vs. Renting Your Home

Featured Articles
• Buying vs. Renting Your Home
• Buy vs. Rent: Pros and Cons
• Buy vs. Rent: Cost Comparison
• The Trivia Block


Buying vs. Renting Your Home
Is now the right time for you to buy a home? You have many options to consider and choices to make. Buying a home is a big responsibility, financially and emotionally, but, most people want to own a home. Homeownership often is referred to as "the American dream." Why is it so special? Among the reasons: Real estate often is an excellent investment, perhaps the number one source of wealth-building for families.
Owning a home has many benefits. When you make a mortgage payment, you are building equity - and that's an investment. Owning a home also qualifies you for tax benefits that may assist you in dealing with your new financial responsibilities - such as homeowners' insurance, real estate taxes, and upkeep - which can be substantial. But given the freedom, stability, and security of owning your own home, they are definitely worth it! Owning your own home also can be a great source of pride and stability.
But homeownership may not be for everyone. It's a big financial commitment - starting with the initial shock of your purchase (including a "down payment" and fees paid to a real estate agent, the lender and others) followed by years of monthly mortgage payments, real estate taxes, property insurance and maintenance costs. When you decide to purchase a home, you accept responsibility for paying for these expenses. They are additional costs to your monthly mortgage payment and should be included in your budget estimates: Property Taxes and Special Assessments, Home/Hazard Insurance, Utilities, Maintenance, Home Owner Association (HOA) Fee if applicable.
One of the advantages of renting is being generally free of most maintenance responsibilities and the flexibility of moving almost as soon as you decide. But by renting, you lose the chance to build equity, take advantage of tax benefits, and protect yourself against rent increases. Also, you may not be free to decorate without permission and may be at the mercy of the landlord for your housing needs. There are many considerations in choosing between renting and buying:
• Do you want to spend several years in a house and in a neighborhood?
• Do you enjoy lawn and garden work?
• Might you need to move suddenly to care for family?
• Do you want to keep your assets accessible in the bank, or do you want to invest long-term in a home?
There are tax advantages to homeownership in both the short and long terms. The mortgage interest and real estate taxes are tax deductible, which allows you to subtract part of your housing-related expenses from your taxable income, which could reduce your tax bill. In many cases, the amount of money a renter spends on rent can be about the same as or less than the amount a homeowner spends on a mortgage. With the tax benefit for homeowners, the savings can be significant.

Buy vs. Rent: Pros and Cons
. Advantages Considerations
Buy Property builds equity Responsible for maintenance
Sense of community, stability, and security Responsible for property taxes
Free to change decor and landscaping Possibility of foreclosure and loss of equity
Not dependent on landlord to maintain property Less mobility then renting
Rent Little or no responsibility for maintenance No tax benefits
Easier to move No equity is built up
. No control over rent increases
. Possibility of eviction


Buy vs. Rent: Cost Comparison
The chart below shows a cost comparison for a renter and a homeowner over a seven year period. The renter starts out paying $800 per month with annual increases of 5%.
The homeowner purchases a home for $110,000 and pays a monthly mortgage of $1,000. After 6 years, the homeowner's payment is lower than the renter's monthly payment. With the tax savings of homeownership, the homeowner's payment is less than the rental payment after 3 years.
Yrs Rent Mortgage Payment Monthly Diff. After Tax Savings Yearly Diff. After Tax Savings
1 800 1000 -200 -50 -2400 -600
2 840 1000 -160 -10 -1920 -120
3 882 1000 -118 +32 -1416 +384
4 926 1000 -74 +76 -888 +912
5 972 1000 -28 +122 -336 +1464
6 1021 1000 +21 +171 +252 +2052
7 1072 1000 +72 +222 +864 +2664
8-30 . . Savings increase every year


The Trivia Block
Who said, "Real Estate is the best investment in the world because it is the only thing they're not making anymore?"
Will Rogers, stage and film star, who began his career as a rope-throwing cowboy.

Buying vs. Renting

Buying vs. Renting - Click Here

Fundamentals of Section 1031 Like-Kind Exchanges

Tax Watch Review the Fundamentals of Section 1031 Like-Kind Exchanges
By Thayne Needles http://www.ciremagazine.com/

Taxpayers planning to sell, purchase, or construct real property should review the possibility of conducting an Internal Revenue Code Section 1031 like-kind exchange to defer the incurrence of federal and general state income taxes on the capital gain. To qualify, property owners must exchange real or personal property (relinquished property) for other property of a like-kind (replacement property).

For example, Javier Cortez owns an apartment building valued at $500,000. He wants to sell the building to purchase another investment property but avoid incurring capital gains taxes. Following detailed IRC rules, he can accomplish this through a 1031 exchange.
Defining Like-Kind Property. The definition of like-kind real property is very broad; the replacement property does not have to be the same type as the relinquished property. For example, Javier could exchange his multifamily building for an office or retail property or for a tenancy-in-common or fee interest. Also, the replacement property is not limited to a single building; Javier could purchase a portfolio of three small buildings.

Personal property may be exchanged for other like-kind or like-class property, but the definition of like-kind personal property is more restrictive than that applied to real property. For example, the exchange of a truck for a car likely would not be allowed, while the exchange of one car for another car or a computer for a printer is treated as an exchange of like-kind property.

Real property is not like-kind to personal property, but combinations of the two may qualify under Section 1031 rules. For instance, Javier could not exchange his multifamily building and its furnishings solely for real or personal property in a completely tax-free exchange, but he could exchange the property for a combination of real and personal property, such as a restaurant and its furnishings and equipment. However, exchanges involving both real and personal property may result in the recognition of some gain as it is unlikely that equal values of personal property of a like-kind are exchanged. This form of multiple property exchange is subject to specific rules and can result in the recognition of gain even in the absence of any money transfer.
Not allowed are transfers of certain property inventory or other property held primarily for sale, such as subdivided lots held for sale, and interests in partnerships or real estate investment trusts.

Use Requirements and Holding Period Taxpayers must have held the relinquished property for use in a trade or business or for investment. Under this requirement, personal residences are not eligible. Vacation homes may qualify as investment property if the taxpayer's personal use is limited or the home has been rented. Since Javier's multifamily building is an investment property, it is eligible for an exchange so long as he selects a replacement property to hold as an investment.
While no formal rule exists, the Internal Revenue Service historically has taken the position that the taxpayer must hold both the relinquished and replacement properties in a qualified use for a certain time period. Thus, the IRS might challenge the exchange if Javier sold the replacement property shortly after the exchange. Taxpayers should consult with a tax adviser concerning the appropriate holding period for property.

Recognition of Gain or Loss To defer total gain, both the value and net equity of the taxpayer's replacement property must equal or be greater than the value and net equity of the relinquished property at the time of the exchange. In Javier's case, the replacement property must have a value of at least $500,000 and the value must exceed by $300,000 (net equity) any debt assumed in connection with the replacement property.
If the value of the replacement property is less than $500,000 or the net equity is less than $300,000, Javier would be taxed on the greater of the trade down in value or equity, limited to the gain he would have recognized if the property simply had been sold for its fair market value.
The Qualified Intermediary Most like-kind exchanges are deferred exchanges. To complete a deferred exchange, the taxpayer must transfer the relinquished property for other like-kind property and not for money. Therefore, the taxpayer cannot gain actual or constructive receipt of the relinquished property's proceeds before purchasing the qualifying replacement property. Tax regulations impose strict limitations on the taxpayer's access or control over the proceeds and expressly limit the right to receive, pledge, borrow, or otherwise obtain the benefits of the money.

Thus, deferred exchanges require the use of a qualified intermediary to hold the sale proceeds and acquire the replacement property. Certain persons that provide other services on behalf of the taxpayer are disqualified to act as a qualified intermediary. Many companies specialize in acting as a qualified intermediary for a fee. Consult a tax adviser to make certain that a qualified person is acting as the intermediary in the case of a deferred exchange.
For example, Javier chooses an acquaintance, Robert, as the qualified intermediary. He assigns his rights under the relinquished property sales agreement to Robert who holds the sale proceeds in an account or in a qualifying escrow until purchasing the replacement property on Javier's behalf.

Deferred Exchange Timing: Strict timing rules apply to deferred exchanges. Generally, the taxpayer must identify the replacement property or properties in writing to the intermediary within 45 days of the relinquished property's sale. Within 180 days of the transfer of the relinquished property, the taxpayer must receive the replacement property. The 180-day period is limited to the due date of the taxpayer's tax return unless that return is extended.
Tax rules also place restrictions on the taxpayer's right to use or pledge the relinquished property sale proceeds during the 180-day exchange period. In Javier's situation, he sold the multifamily property to another investor for $500,000 and placed the proceeds in an escrow account held by Robert. Within a month he identified in writing two small medical office buildings as the replacement property. Two weeks later, Robert purchased the medical office buildings for $500,000 using the relinquished property sale proceeds and transferred the title to Javier. By following the guidelines, Javier successfully completed a deferred exchange and avoided incurring federal and state taxes.

Consult a tax professional for more information about Section 1031 tax-deferred exchanges.
http://www.ciremagazine.com/article.php?article_id=126

If this is what you wish to do or need more info on the subject send me an email hermia@acastle4u.com I will put you in touch with an accommodator.

2006 IRS Tax Law changes summary:

IRS Tax Law changes:

Courtesy of: Duane@DuaneGomer.com 800-439-4909 Visit wwwDuaneGomer.com

1. The gift tax annual exclusion is $12,000 for 2006.

2. The capital gains rate of 15% was extended through 2010. For 2006 taxpayers in the 10%-15% tax rate will pay 5% tax on capital gains.

3. Business mileage is $.445 for 2006 and will be $.485 for 2007 (check Pub. 463).

4. Telephone Excise Tax Refund (TETR) is a one-time payment available on your 2006 federal income tax return. It is designed to refund previously collected long distance telephone taxes. Individuals, businesses and tax-exempt organizations are eligible to request it. Businesses and tax-exempts can dig through their old bills. Or they can review their bills for 2 months and use a special formula to figure the refund.

For more information on any of these topics go to http://www.irs.gov. While you are there, checkout Publication 523 – Selling a Home.

Courtesy of: Duane@DuaneGomer.com
800-439-4909
Visit wwwDuaneGomer.com

=========================================

Web site locations: for further reference:

Tax Law Changes Related to Foreign Issues
... Tax Law Changes Related to Foreign Issues ... Tax Law Changes Related to Foreign Issues ... Topic Listing — 2006 and Later Tax Years ...
http://www.irs.gov/formspubs/article/0,,id=118912,00.html - 11.2KB
14 Dec 06

... Tax Law Changes May Affect People Giving to ... Recent Tax Law Changes May Affect People Giving to ... The new law does not change the prior-law requirement that a taxpayer get ...
http://www.irs.gov/newsroom/article/0,,id=164997,00.html - 17.5KB
14 Dec 06
Tax Law Changes for Individuals
... Tax Law Changes for Individuals ... Tax Law Changes for Individuals ... cost of operating your car changes to 44.5 cents a ...
http://www.irs.gov/formspubs/article/0,,id=109876,00.html - 27.0KB
12 Dec 06
Tax Law Changes for Businesses
... Tax Law Changes for Businesses ... Tax Law Changes for Businesses ... Topics — Tax Year 2006 ...
http://www.irs.gov/formspubs/article/0,,id=109879,00.html - 14.8KB
26 Nov 06
Tax Law Changes for Gifts and Estates and Trusts
... Tax Law Changes for Gifts and Estates and ... Tax Law Changes for Gifts and Estates and ... 2006 federal tax rates for estates and trusts ...
http://www.irs.gov/formspubs/article/0,,id=112782,00.html - 18.5KB
26 Nov 06
Tax Law Changes Related to Excise Taxes
... Tax Law Changes Related to Excise Taxes ... Tax Law Changes Related to Excise Taxes ... Communications Excise Tax, Toll Telephone Service ...
http://www.irs.gov/formspubs/article/0,,id=118913,00.html - 12.0KB
26 Nov 06
Tax Law Changes for All Taxpayers
... Tax Law Changes for All Taxpayers ... Tax Law Changes for All Taxpayers ... Publication 553, Highlights of 2006 Tax Law Changes, available soon. -- 10-NOV-2006 ...
http://www.irs.gov/formspubs/article/0,,id=120300,00.html - 10.2KB
26 Nov 06
Tax Law Changes for IRAs and Other Retirement Plans
... Tax Law Changes for IRAs and Other Retirement ... Tax Law Changes for IRAs and Other Retirement ... 403(b) Plan Changes ...
http://www.irs.gov/formspubs/article/0,,id=117542,00.html - 24.3KB
14 Nov 06
Tax Law Changes for Exempt Organizations
... Tax Law Changes for Exempt Organizations Tax Law Changes for ... Law Changes for Exempt Organizations Tax Law Changes for Exempt Organizations Additional Filing Requirements The Pension Protection Act ...
http://www.irs.gov/formspubs/article/0,,id=118918,00.html - 14.2KB
13 Nov 06

Christmas Tree Fire video courtesy of National Institute of Standards and Technology - your U.S. Dept of Commerce

Using the Fireproofing Solution for your Christmas Tree

Using the Fireproofing Solution for your Christmas Tree

1. Once you get home with your new tree, get a saw and IMMEDIATELY make a fresh cut at the base of the tree trunk. This is mandatory for any tree you’ve bought. Make your cut about an inch above the bottom of the trunk.
2. Next, you’ll need a place to store your tree for a few days before taking it into your home, as it takes a few days for the preservative mentioned in the next step to fully saturate the tree. An ideal place would be the carport/garage or possible a balcony for apartment dwellers.
3. Immediately after making your cut from the bottom of the tree, mix the homemade preservative as follows:
Into a 2-gallon (or 1-gallon jugs) bucket, add HOT WATER from the kitchen tap. Fill the bucket to within an inch or so of the top, then add the following ingredients:
...2 cups of Karo syrup
...2 ounces of liquid chlorine bleach
...2 pinches of Epsom salt
...½ teaspoon of Boraxo
...1 teaspoon of chelated iron (pronounced KEY-lated)
Stir these ingredients thoroughly in the bucket(s); then IMMEDIATELY stand the trunk of the tree in this solution. Leave the tree in the solution containers for a day of two until you’re ready to take it indoors and decorate it.
4. After taking the tree indoors, make sure to put it in a stand with a water reservoir at the bottom. Once the tree is secured in its “final resting place”, get the bucket containing your preservative and FILL THE RESERVOIR IN THE TREE STAND TO THE TOP.
5. Last but not least, EVERY DAY, WITHOUT EXCEPTION, MAKE SURE THE RESERVOIR IS KEPT FILLED TO THE TOP WITH THE PRESERVATIVE SOLUTION.
That’s all there is to it. If you follow these steps faithfully, you will have a completely FIREPROOFED Christmas Tree to enjoy throughout the holidays.
And, for those inquisitive minds, here’s an explanation of why and how it works.
The Karo syrup provides the SUGAR, and it is only in the presence of sugar that tremendous amounts of water will be taken up by the exposed tissue at the base of the trunk. Without the sugar, only the smallest amount of water will be absorbed. However, in the presence of sugar, you can expect more than 1½ gallons of the solution to be absorbed by the tree during a 10-14 day period.
But there’s more. Thanks to the boron you have supplied (in the Boraxo), the water and sugar will be moved to every needle and branch of the tree. Remember, boron is what makes sugar move, not only in trees, but vegetables, fruits and even houseplants.
Then, there’s the Epsom salt and the chelated iron. Epsom salt is magnesium sulfate, and magnesium (together with iron) is the center molecules in the process we know as chlorophyll production. By making the magnesium and iron available to the tree, you’re assuring yourself of green needles, even if the tree was not sprayed at the tree farm before being shipped to the market.
But what about the chlorine bleach? Chlorine stops a mold from forming when water and sugar stand for any period of time. Here, the chlorine stops the mold from forming in the bucket and the reservoir of the tree stand where your preservative sits.
Benefits
1. Your tree will be SOAKING WET with water. In fact, at least 800% more water than when the tree was growing in the forest! This in turn prevents the tree from becoming a fire hazard.
2. No needles will drop, no matter what variety of evergreen you choose to display in your home. At the same time, the tree will give off a fragrance like that which you’ve sensed while walking through a forest of evergreens of strolling through the Christmas tree lot.
3. Finally, make the test yourself. When the holidays are over and the tree is taken down and moved outdoors, cut one of the branches off. Move away from the tree and try to light the branch with a match. IT WON’T BURN!!! So, take the time to fireproof your live evergreen tree this Christmas and enjoy a safe holiday!!!

Louisiana Emergency Preparedness Association
8550 United Plaza Blvd., Suite 1001
Baton Rouge, LA 70809
Toll free: (877) 405-5372 Phone: (225) 408-4757
E-mail: lepa@pncpa.com Web: www.lepa.org