Alternative Minimum Tax
By Rhea John
The major purpose behind the alternative minimum tax was to make sure that the people with ridiculously large amount of wealth are not able to shelter all their income, by way of deductions. Now, over a period of time, who should e considered as wealthy, is actually a matter of great contention.
Now, instead of opting for a tax net covering the wealthy, the Alternative Minimum Tax has become a stealth tax, which adversely affects the upper middle class taxpayers. As it is, these taxpayers are usually not able to see it coming until it hits the roof. According to the archives, around twenty thousand taxpayers came under the Alternative Minimum Tax category in the year 1970. By the next thirty six years, the number has grown up to around four million. Not just that, according to the Internal Revenue services, this number would further go up and may touch a level of more than thirty five million by the year 2010.
Now, the major issue in terms of the Alternative Minimum Tax, is not in regard to the tax bracket, which is actually lesser than the regular tax system. The main problem is in regard to the deductions, which it does not allow. So, while you may still consider mortgage interest, as well as charitable donations, the Alternative Minimum Tax, would however, exclude the state, as well as the local income taxes, as well as property taxes, child tax credits, home-equity loan interest, unreimbursed business expenses, tax preparation fees and legal fees.
As it is, lack of these exemptions, make you end up with a higher taxable income. By way of simply living in a place with higher property tax or having a big family might trigger the alternative minimum tax, as would a mortgage deduction. By way of exercising the incentive stock options might be the biggest and the most unexpected blow. Under the alternative minimum tax, the difference in between the exercise price, as well as the market price should count as income. Now, before you opt for an incentive stock option, you should always consult a financial professional. This is because, the number of options, which you exercise, as well as the timing may substantially affect the amount of taxes, which you would owe on this gain.
In fact, the private activity bond, or the municipal bonds for various public projects like the airports, as well as stadiums, tends to lose the tax-free status in alternative minimum tax. As it is, you should consult your financial professional while investing in private activity bonds.
To read more about Finance Help Ideas visit Finance Help Ideas Learn more about Finance Chartbusters
==============================
Key Factors to Oil and Gas Investing
By Wright Brianna
In the last few years, we have seen a tremendous rise in investment in oil and gas. A major reason for this might be the tragic scenario in the share markets across the globe, which has forced many investors, to look out for alternative avenues of investments. As it is, oil and gas investment requires a keen sense of judgment on the part of the investor in determining what oil and gas stocks he should invest in.
Now, before you decide to invest in any particular stocks, such as the oil sands stocks, or the Canadian oil stocks, you need to take care of a few aspects. The following are some of the aspects, which you need to consider, before you go ahead with your investment:
1. First and foremost, your decision should be based on facts rather than market sentiments. That does not at all imply that you have to go against popular views; but it is always better to go by a logical analysis, instead of mood swings.
2. The most common saying that is very much applicable in Oil and Gas investment is; do not keep all your eggs in one basket. So, as it is in this case, it is advisable to diversify your portfolio and not pin all your hopes on a particular area. This would not only help you gain in the long run, but would also lower the risk factor as well. In fact the more diversified is your portfolio, the lower are your chances of loss.
3. Make sure that your research is not limited to simply market reviews. Do what most people rarely do, i.e. read journals and know about latest research and development projects as well as new patent rights which have been registered. This would give you a fair idea of promising prospects. Apart from that, make sure that you know bout the recent findings in regard to oil and natural gas reserves.
4. A common mistake which you should always avoid is investing your cash reserves, all at one time. You should always have some spare reserves, to bail you out of difficult times. Spare reserves may also play a great role in maximizing your returns as well.
Apart from the above factors, there are several other factors, which may help you in making the right kind of investment. Make sure that you do not buy overpriced stocks. For this you may check the price earning ratio. Apart from this, another factor which plays an important role is commodity prices. So, if you are looking forward to long term investment in oil and gas, then you do not have to worry much about the commodity prices. In case if you are focusing on short term investment, then in that case, commodity prices become extremely important.
To read more about Finance Portal visit Finance Portal Learn more about Finance fundas
=================================
Half Empty Becomes Half Full
By Mark Patricks
Hello again. How are you holding up?
I welcome all your comments and feedback and trust my words each week are helpful in such a tumultuous time.
To be honest, it can get very lonely in my seat. Not only do I speak through cyberspace with no indication of who is listening, but I'm also a contrarian, as long-time readers will know.
Being a successful contrarian money-maker means doing something that most people (at the time) believe is completely crazy... without actually doing something that really is completely crazy.
Over winter, I've never felt so alone. I continually banged my fist on the table making the case for commodities such as oil, gold, silver, wheat, copper etc.
Maybe even you, dear reader, thought I was a fool for doing so. But now, I don't feel so alone. It seems the world has caught up with me as those commodities have been soaring. How much money did YOU make from this? Perhaps from buying commodity stocks or futures??
Why have things turned around?
The reason I had told you about all along: commodities are priced in US Dollars and the government is deliberately devaluing the currency. You see, everyone was reading it wrong. They (rightly) looked at world demand plummeting and priced commodities lower (too low), BUT it's not lack of demand that raised the prices- the Federal Reserve did with their printing press.
As in life, the markets move in a herd-like fashion. Safety in numbers. It's all psychological. People assume tomorrow will be like today.
If you can resist this attraction to be with a herd, or even better to be REPELLED by a herd, you can make money from ANY market, in ANY economic climate.
So, the stock market rally continues as I had expected and hoped. It's all positive action so far and it looks like this might, just might be the start of the awaited bear market rally.
As I detailed last week, this rally should continue until people stop calling it a bear market rally and think it's actually a bull market. How high is that? Anyone's guess, but I reckon around 10-11,000.
I know most people are hanging on to their stocks and waiting for the bounce-back. If things play out as I expect, that really will be their last chance to dump everything... unless they want to wait 10-20 years to get their money back.
You see, nothing has really changed in this crisis... apart from sentiment. But sentiment is powerful. It can drive markets and it doesn't have to be right. What's effectively happened here is that the glass is now being seen as half-full rather than half-empty. The amount of water in the glass hasn't changed.
Look, here's the problem and this is what almost everyone is overlooking...
The problem, it is perceived, is that the economy has crashed because credit has dried up. Mortgages, personal loans, car finance, credit cards etc.
So the obvious solution to this is to get banks lending again, right?
Yes, correct. If that is the problem, then this is indeed the solution. That's why the Obama administration is on a tear to clear the so-called "toxic assets" from banks' balance sheets using wonderful new jargon that amounts to nothing more than chicanery.
But the starting premise is faulty! What if credit drying up isn't really the problem at all?
We as humans look for a reason for everything, when often the answer is at best elusive or abstract.
So what is the cause then?
Let me ask YOU what the cause is...
Let's say right now, you could get all the credit you wanted. Would you go out and get a bigger house/mortgage? Would you buy a new car? Would you blast your credit card at the mall on a load of stuff??
Maybe, if you felt reasonably confident of being able to pay it back through job security etc., but, and here's the kicker, maybe people are just spent out!
Maybe people are tired of living month to month, revolving credit, bills, stress, arguments. Maybe people just want a simpler life.
The government is engaged in a very simple policy now: get people spending again and borrowing more, and FAST. The entire world economy has now been built around people in the street spending like crazy on a load of stuff they don't really need.
I think we've reached saturation point. There's only so many flat screens you can enjoy.
People tried to leave the party in 2002, but Alan Greenspan (the "maestro") locked the doors and ignited a housing bubble to keep the celebration going. In 2007/8, people finally got out the front door and made it to their cars, staggering down the driveway.
And now, the new Fed chairman, Ben Bernanke, holds up 2 bottles of vintage Champagne and beckons you back in.
My feeling is he's throwing a party that people won't show up for, but you be the judge.
This will drive Bernanke insane. He will keep throwing money at this problem and it will go nowhere except the destruction of the currency. Like the crazed Ahab in "Moby Dick", in an all-out attempt to crush his nemesis (deflation), he will destroy himself and take the dollar with him.
The United Nations have just proposed the US dollar be stripped of its reserve currency status.
This last week, Bernanke brought out the big guns and printed money to buy government bonds. They call it "quantitative easing". I call it a ponzi scheme.
Which paper currency should rise most against the dollar? In my opinion, Norway's. It effectively has an "oil standard". It rose 7% last week alone against the dollar. Of course, all this is not lost on gold. Gold is now eagerly eyeing the $1,000 mark again and probably the most successful fund manager - Paulson- just bought a huge stake in a major gold mine.
Meanwhile, enjoy the rally. If it proceeds as I hope and expect, banking and commodity stocks should lead the way.
Until next time,
Mark Patricks
Mark Patricks is an author, publisher, and businessman. You can read his weekly writings in Freedom by Friday a newsletter published by the League of Power. To learn more about this newsletter or the exclusive secret society The League of Power please visit http://www.leagueofpower.com While there you can also claim a free $27 gift.
By Rhea John
The major purpose behind the alternative minimum tax was to make sure that the people with ridiculously large amount of wealth are not able to shelter all their income, by way of deductions. Now, over a period of time, who should e considered as wealthy, is actually a matter of great contention.
Now, instead of opting for a tax net covering the wealthy, the Alternative Minimum Tax has become a stealth tax, which adversely affects the upper middle class taxpayers. As it is, these taxpayers are usually not able to see it coming until it hits the roof. According to the archives, around twenty thousand taxpayers came under the Alternative Minimum Tax category in the year 1970. By the next thirty six years, the number has grown up to around four million. Not just that, according to the Internal Revenue services, this number would further go up and may touch a level of more than thirty five million by the year 2010.
Now, the major issue in terms of the Alternative Minimum Tax, is not in regard to the tax bracket, which is actually lesser than the regular tax system. The main problem is in regard to the deductions, which it does not allow. So, while you may still consider mortgage interest, as well as charitable donations, the Alternative Minimum Tax, would however, exclude the state, as well as the local income taxes, as well as property taxes, child tax credits, home-equity loan interest, unreimbursed business expenses, tax preparation fees and legal fees.
As it is, lack of these exemptions, make you end up with a higher taxable income. By way of simply living in a place with higher property tax or having a big family might trigger the alternative minimum tax, as would a mortgage deduction. By way of exercising the incentive stock options might be the biggest and the most unexpected blow. Under the alternative minimum tax, the difference in between the exercise price, as well as the market price should count as income. Now, before you opt for an incentive stock option, you should always consult a financial professional. This is because, the number of options, which you exercise, as well as the timing may substantially affect the amount of taxes, which you would owe on this gain.
In fact, the private activity bond, or the municipal bonds for various public projects like the airports, as well as stadiums, tends to lose the tax-free status in alternative minimum tax. As it is, you should consult your financial professional while investing in private activity bonds.
To read more about Finance Help Ideas visit Finance Help Ideas Learn more about Finance Chartbusters
==============================
Key Factors to Oil and Gas Investing
By Wright Brianna
In the last few years, we have seen a tremendous rise in investment in oil and gas. A major reason for this might be the tragic scenario in the share markets across the globe, which has forced many investors, to look out for alternative avenues of investments. As it is, oil and gas investment requires a keen sense of judgment on the part of the investor in determining what oil and gas stocks he should invest in.
Now, before you decide to invest in any particular stocks, such as the oil sands stocks, or the Canadian oil stocks, you need to take care of a few aspects. The following are some of the aspects, which you need to consider, before you go ahead with your investment:
1. First and foremost, your decision should be based on facts rather than market sentiments. That does not at all imply that you have to go against popular views; but it is always better to go by a logical analysis, instead of mood swings.
2. The most common saying that is very much applicable in Oil and Gas investment is; do not keep all your eggs in one basket. So, as it is in this case, it is advisable to diversify your portfolio and not pin all your hopes on a particular area. This would not only help you gain in the long run, but would also lower the risk factor as well. In fact the more diversified is your portfolio, the lower are your chances of loss.
3. Make sure that your research is not limited to simply market reviews. Do what most people rarely do, i.e. read journals and know about latest research and development projects as well as new patent rights which have been registered. This would give you a fair idea of promising prospects. Apart from that, make sure that you know bout the recent findings in regard to oil and natural gas reserves.
4. A common mistake which you should always avoid is investing your cash reserves, all at one time. You should always have some spare reserves, to bail you out of difficult times. Spare reserves may also play a great role in maximizing your returns as well.
Apart from the above factors, there are several other factors, which may help you in making the right kind of investment. Make sure that you do not buy overpriced stocks. For this you may check the price earning ratio. Apart from this, another factor which plays an important role is commodity prices. So, if you are looking forward to long term investment in oil and gas, then you do not have to worry much about the commodity prices. In case if you are focusing on short term investment, then in that case, commodity prices become extremely important.
To read more about Finance Portal visit Finance Portal Learn more about Finance fundas
=================================
Half Empty Becomes Half Full
By Mark Patricks
Hello again. How are you holding up?
I welcome all your comments and feedback and trust my words each week are helpful in such a tumultuous time.
To be honest, it can get very lonely in my seat. Not only do I speak through cyberspace with no indication of who is listening, but I'm also a contrarian, as long-time readers will know.
Being a successful contrarian money-maker means doing something that most people (at the time) believe is completely crazy... without actually doing something that really is completely crazy.
Over winter, I've never felt so alone. I continually banged my fist on the table making the case for commodities such as oil, gold, silver, wheat, copper etc.
Maybe even you, dear reader, thought I was a fool for doing so. But now, I don't feel so alone. It seems the world has caught up with me as those commodities have been soaring. How much money did YOU make from this? Perhaps from buying commodity stocks or futures??
Why have things turned around?
The reason I had told you about all along: commodities are priced in US Dollars and the government is deliberately devaluing the currency. You see, everyone was reading it wrong. They (rightly) looked at world demand plummeting and priced commodities lower (too low), BUT it's not lack of demand that raised the prices- the Federal Reserve did with their printing press.
As in life, the markets move in a herd-like fashion. Safety in numbers. It's all psychological. People assume tomorrow will be like today.
If you can resist this attraction to be with a herd, or even better to be REPELLED by a herd, you can make money from ANY market, in ANY economic climate.
So, the stock market rally continues as I had expected and hoped. It's all positive action so far and it looks like this might, just might be the start of the awaited bear market rally.
As I detailed last week, this rally should continue until people stop calling it a bear market rally and think it's actually a bull market. How high is that? Anyone's guess, but I reckon around 10-11,000.
I know most people are hanging on to their stocks and waiting for the bounce-back. If things play out as I expect, that really will be their last chance to dump everything... unless they want to wait 10-20 years to get their money back.
You see, nothing has really changed in this crisis... apart from sentiment. But sentiment is powerful. It can drive markets and it doesn't have to be right. What's effectively happened here is that the glass is now being seen as half-full rather than half-empty. The amount of water in the glass hasn't changed.
Look, here's the problem and this is what almost everyone is overlooking...
The problem, it is perceived, is that the economy has crashed because credit has dried up. Mortgages, personal loans, car finance, credit cards etc.
So the obvious solution to this is to get banks lending again, right?
Yes, correct. If that is the problem, then this is indeed the solution. That's why the Obama administration is on a tear to clear the so-called "toxic assets" from banks' balance sheets using wonderful new jargon that amounts to nothing more than chicanery.
But the starting premise is faulty! What if credit drying up isn't really the problem at all?
We as humans look for a reason for everything, when often the answer is at best elusive or abstract.
So what is the cause then?
Let me ask YOU what the cause is...
Let's say right now, you could get all the credit you wanted. Would you go out and get a bigger house/mortgage? Would you buy a new car? Would you blast your credit card at the mall on a load of stuff??
Maybe, if you felt reasonably confident of being able to pay it back through job security etc., but, and here's the kicker, maybe people are just spent out!
Maybe people are tired of living month to month, revolving credit, bills, stress, arguments. Maybe people just want a simpler life.
The government is engaged in a very simple policy now: get people spending again and borrowing more, and FAST. The entire world economy has now been built around people in the street spending like crazy on a load of stuff they don't really need.
I think we've reached saturation point. There's only so many flat screens you can enjoy.
People tried to leave the party in 2002, but Alan Greenspan (the "maestro") locked the doors and ignited a housing bubble to keep the celebration going. In 2007/8, people finally got out the front door and made it to their cars, staggering down the driveway.
And now, the new Fed chairman, Ben Bernanke, holds up 2 bottles of vintage Champagne and beckons you back in.
My feeling is he's throwing a party that people won't show up for, but you be the judge.
This will drive Bernanke insane. He will keep throwing money at this problem and it will go nowhere except the destruction of the currency. Like the crazed Ahab in "Moby Dick", in an all-out attempt to crush his nemesis (deflation), he will destroy himself and take the dollar with him.
The United Nations have just proposed the US dollar be stripped of its reserve currency status.
This last week, Bernanke brought out the big guns and printed money to buy government bonds. They call it "quantitative easing". I call it a ponzi scheme.
Which paper currency should rise most against the dollar? In my opinion, Norway's. It effectively has an "oil standard". It rose 7% last week alone against the dollar. Of course, all this is not lost on gold. Gold is now eagerly eyeing the $1,000 mark again and probably the most successful fund manager - Paulson- just bought a huge stake in a major gold mine.
Meanwhile, enjoy the rally. If it proceeds as I hope and expect, banking and commodity stocks should lead the way.
Until next time,
Mark Patricks
Mark Patricks is an author, publisher, and businessman. You can read his weekly writings in Freedom by Friday a newsletter published by the League of Power. To learn more about this newsletter or the exclusive secret society The League of Power please visit http://www.leagueofpower.com While there you can also claim a free $27 gift.
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