JUST FOR FUN - MY HIGH SCOOL ENGLISH TEACHER WOULD LOVE THIS

Buffalo buffalo Buffalo buffalo buffalo buffalo Buffalo buffalo

Believe it or not, this sentence is grammatically correct and has meaning: “Buffalo buffalo Buffalo buffalo buffalo buffalo Buffalo buffalo.” First devised by professor William J. Rapaport in 1972, the sentence uses various meanings and parts of speech for the term “buffalo” (and its related proper noun “Buffalo”) to make an extremely hard-to-parse sentence.
Although most people know “buffalo” as both a singular and plural term for bison, and “Buffalo” as a city in New York, “buffalo” is also a verb meaning “to bully, confuse, deceive, or intimidate.”

Using these definitions, Wikipedia suggests the sentence can be read: [Those] (Buffalo buffalo) [whom] (Buffalo buffalo buffalo) buffalo (Buffalo buffalo).

Still too hard to follow for those of us who don’t know “buffalo” as a verb. Refine once more: [Those] buffalo(es) from Buffalo [that are intimidated by] buffalo(es) from Buffalo intimidate buffalo(es) from Buffalo.

And once more: Bison from Buffalo, New York who are intimidated by other bison in their community also happen to intimidate other bison in their community.

Wikipedia has further explanation, including the slightly frightening note: Buffalo is not the only word in English for which this kind of sentence can be constructed; any word which is both a plural noun and a plural form of a transitive verb will do.

Other examples include dice, fish, right and smelt.

Beware of Buffalo buffalo, buffalo, for they may buffalo you.

EMANCIPATION DAY GIVES YOU UNTIL APRIL 18TH TO FILE YOUR RETURN

Taxpayers will have until Monday, April 18 to file their 2010 tax returns and pay any tax due because Emancipation Day, a holiday observed in the District of Columbia, falls this year on Friday, April 15. By law, District of Columbia holidays impact tax deadlines in the same way that federal holidays do; therefore, all taxpayers will have three extra days to file this year. Taxpayers requesting an extension will have until Oct. 17 to file their 2010 tax returns.

The IRS expects to receive more than 140 million individual tax returns this year, with most of those being filed by the April 18 deadline.

A NATION IN DEBT

(U.S. Chamber Magazine) -- USChamberMagazine.com reports that "federal spending has accelerated sharply, having increased $5,000 per household since 2008 and $10,000 per household in the past decade." The story notes that "federal debt is expected to equal 62% of GDP in 2010, up from 40% in 2008, according to the CBO." And if "you count the government’s obligations (Social Security, Medicare, and Medicaid), debt is currently approaching 100% of the size of the economy."

At recent forum held by the U.S. Chamber’s Campaign for Free Enterprise (CFE) and the National Chamber Foundation (NCF), former Comptroller General of the United States David Walker said, "The biggest deficit in this country is a leadership deficit."

http://www.nebraskaagconnection.com/story-national.php?Id=2541&yr=2010

REPEAL OF THE NEW 1099 RULES NOT ADDRESSED IN THE NEW TAX ACT

We were all hoping that the Congress would see fit to repeal the new onerous 1099 rules that were part of the Health Care Bill. But no luck.

The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 did not include a provision to repeal the 1099 rules that were adopted earlier in the year by Congress. For unspecified reasons, the repeal of the 1099 provisions were not included in the legislation and no amendments to the original legislation were adopted. As a result, it will likely be the earlier part of the next session of Congress before this issue will again be addressed.

Our concern is that (1) keeping records to track expenses by provider, (2) obtaining tax identification numbers and other information from providers of property and services, and (3) providing Forms 1099-MISC during January, a month when taxpayers would not normally be focused on tax issues, would be extremely burdensome.

As I am sure that you know, the provision in the Patient Protection Act that expands information reporting requirements to business payments for property from corporations and the provisions in the Small Business Jobs Act of 2010 that expands the information reporting requirements to payments for rental property expenses, both add to these critical administrative burdens. The new requirements applicable to rental property expense payments will take effect in 2011. Note, this would be the first time that individual taxpayers owning rental property who are not "engaged in a trade or business," would be required to provide Forms 1099-MISC. For example, many individuals, who own a vacation property that is rented part of the year to help defray their costs, may be subject to the reporting provisions.

I thought that this might be a good place to show you what the legislation looked like in the Health Care Bill. See if you can read it.

INFORMATION RETURNS. The Patient Protection
and Affordable Care Act, Pub. L. No. 111-148, extended
information reporting beginning in 2012. Section 9006 of Public
Law 111-148 entitled, “Expansion of Information Reporting
Requirements” amends I.R.C. § 6041(a) and adds I.R.C. §§
6041(h) and 6041(i), all effective for payments made after
December 31, 2011. Section 2101 of the Small Business Jobs
Act of 2010, Pub. L. No. 111-240, added I.R.C. § 6041(h) to
provide:
“Solely for purposes of subsection (a) and except as
provided in paragraph (2), a person receiving rental income
from real estate shall be considered to be engaged in a trade
or business of renting property.”
Effective for taxable years beginning after December 31, 2010.
Pub. L. No. 111-240. Exceptions are provided for members of
the military and for hardship and minimal amounts as set by
regulations.

WILL THIS BE IN THE FUTURE FOR THE UNITED STATES?

While U.S. Grows Government, European Governments Spending Less

(Budget & Tax News ) -- Heartland.org reports, "Americans are seeing a massive expansion of the scale and scope of their government’s spending, while Europeans are coming to terms with austerity, conservative fiscal policy, and a reexamination of the state’s role in society." The story notes that in the UK, every government entity — except the National Health Service and Foreign Aid Department — plan to make 25- 40% cuts to their budgets. In France, the government is increasing retirement age. And in Germany, Chancellor Angela Merkel’s government has instituted an aggressive deficit-reduction program.

http://www.heartland.org/budgetandtax-news.org/article/28988/While_Europes_Governments_Spend_Less_US_Spends_More.html

QUESTION ON DELAY IN FILING TAX RETURN

QUESTION: I heard that we could not file our tax return until the end of February. I was expecting a refund. Is this true?
Casey

Sorry Casey, you are going to have to wait to get your refund. It is not the IRS's fault. Congress had all year to make the changes but they waited until December 16th to pass the legislation. Last week’s changes in the law mean that the IRS will need to reprogram its processing systems for three provisions that were extended in the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 that became law on Dec. 17.

The Internal Revenue Service announced on December 23rd that the upcoming tax season will start on time for most people, but taxpayers affected by three recently reinstated deductions need to wait until mid- to late February to file their individual tax returns. In addition, taxpayers who itemize deductions on Form 1040 Schedule A will need to wait until mid- to late February to file as well.

People claiming any of these three items — involving the state and local sales tax deduction, higher education tuition and fees deduction and educator expenses deduction as well as those taxpayers who itemize deductions on Form 1040 Schedule A — will need to wait to file their tax returns until tax processing systems are ready, which the IRS estimates will be in mid- to late February.

Taxpayers will need to wait to file if they are within any of the following three categories:

• Taxpayers claiming itemized deductions on Schedule A. Itemized deductions include mortgage interest, charitable deductions, medical and dental expenses as well as state and local taxes. In addition, itemized deductions include the state and local general sales tax deduction extended in the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 enacted Dec. 17, which primarily benefits people living in areas without state and local income taxes and is claimed on Schedule A, Line 5. Because of late Congressional action to enact tax law changes, anyone who itemizes and files a Schedule A will need to wait to file until mid- to late February.

• Taxpayers claiming the Higher Education Tuition and Fees Deduction. This deduction for parents and students — covering up to $4,000 of tuition and fees paid to a post-secondary institution — is claimed on Form 8917. However, the IRS emphasized that there will be no delays for millions of parents and students who claim other education credits, including the American Opportunity Tax Credit and Lifetime Learning Credit.

• Taxpayers claiming the Educator Expense Deduction. This deduction is for kindergarten through grade 12 educators with out-of-pocket classroom expenses of up to $250. The educator expense deduction is claimed on Form 1040, Line 23, and Form 1040A, Line 16.

MOVING EXPENSES

QUESTION: I got a new job and am moving about 150 miles from my current job. Can I deduct my moving expenses even if I don't itemize?

Jerrold


ANSWER: Congratulations on the new job. You can take a deduction even if you do not itemize.

You can deduct the expenses for one trip (for you and your family) to the new home and for moving your furniture and household goods (see below). There are two tests that you must meet which it appears you should qualify.

Distance test: The distance from your old residence to your new job location must be at least 50 miles more than the distance from your old residence to your old job location. (But, the distance from your new residence to the new job can't be greater than the distance from your old residence to the new job, unless you are either required to live in the new location or your time or cost of commuting are being reduced.)

Period-of-employment test: To qualify for the moving expense deduction, you must either:
(1) work full-time as an employee for 39 weeks during the 12-month period after arriving at the new location, or
(2) work full-time as an employee or perform services full-time as a self-employed individual for 78 weeks during the during the 24-month period after arrival, of which not less than 39 weeks are during the first 12-month period.
Either you or your spouse can satisfy one of the above period-of-employment tests, but weeks worked by one can't be added to weeks worked by the other.

Deductible moving expenses. If you meet the above tests you can deduct the following expenses of moving yourself and the members of your household (but not tenants or employees) to the new location:

• The cost of moving household goods and personal effects. This includes the cost of packing, crating, transporting, storing and insuring (for any consecutive 30-day period after the move), connecting and disconnecting utilities and shipping the car and household pets. Expenses of moving household goods or personal effects from a place other than the old residence are deductible only to the extent of what it would cost you to move them from the old residence. The cost of moving items bought en route isn't deductible.
• Expenses of travel (including lodging but not meals) from the old residence to the new. The cost of a single trip for you and for members of your household is allowed, but you needn't travel together at the same time. If you use your car for travel, you can deduct either the cost of gas and oil (accurate records must be kept) or a standard mileage plus parking fees and tolls. General maintenance, repairs, insurance or depreciation aren't deductible.
• Lodging expenses for the day you arrive in the new area, and the cost of lodging in the old area within one day after you could no longer live in the old home because your furniture had been moved. Note that pre-move and temporary living house-hunting expenses aren't deductible.

There's no dollar limit on the amount of the expenses, but you can only deduct reasonable costs. That means the expenses can't be lavish or extravagant.

The expenses will be deducted in the year(s) in which you pay them. You may deduct the expenses even if you haven't satisfied the minimum employment period by return time. If you later can't satisfy the requirement, you must either include in income the amount you deducted, or file an amended return for the year of the deduction with the deduction eliminated. You also can wait and claim the deduction on an amended return or refund claim when you have satisfied the minimum employment period.

If you are reimbursed by your employer for your expenses or if your employer pays them directly, you won't have to include the reimbursements or payments in income if you properly account to your employer and you could have deducted the expenses had you paid them yourself. (Of course, you get no deduction for any amounts you don't have to include in income.) Excludable expenses aren't included in “wages” or any other taxable amounts on your Form W-2, but excludable expense reimbursements your employer pays directly to you will appear for information purposes only in Box 12 of the W-2 as Code P.

It's important that you keep records of distances from old and new residence to old and new job, dates of travel and arrival to the new area, employment periods, and records and receipts for your moving expenses, to support your deduction.

It is a pleasure serving you.