QUESTION ON C CORPORATION YEAR END

Larry, I ran across your blog and was wondering if you could answer a question for me. I was interviewing an accountant for my taxes and he was telling me that the only choice for year end for a C Corp fiscal year is either Oct. 1st or Jan. 1st. I could not find the info on the IRS web site. Thanks for your time.

Kyle

Kyle, a "C" corporation can have a fiscal year ending at the end of any calendar month. Either there is a misunderstanding, or you need to find yourself a professional tax advisor who is a little more knowledgeable about such basic matters. If this is what the accountant really thinks, consider yourself lucky that this person revealed his ignorance so early in your potential relationship.

Good luck.

Larry Kopsa CPA

GOOD NEWS - CONSUMER CONFIDENCE IS UP

Consumer confidence climbs to highest level since November

Consumer confidence in the U.S. exceeded the predictions of economists in April, the Conference Board reported. The Consumer Confidence Index, a widely followed benchmark of how consumers feel about the economy, reached its highest level since November. Google/The Associated Press

QUESTION ON CHANGING A C-CORP YEAR-END

Hi – we have a c-corp small business with a year-end of June 30 and would like to change that to a calendar year. Any advice on what the procedures are?

Derek

Derek, I hope all is well. First of all, make sure that you check with your tax advisor on the wisdom of changing year-ends. We usually like to have a different corporate year-end than our personal year-end. Different reporting periods allows us to move some money back and forth between the taxing entities and therefore postpone paying tax.

For example, if the corporate income is high on June 15th, the corporation could pay a bonus to the individual prior to June 30th and get a deduction which reduces the corporate tax. The individual, on the other hand, would not have to pay tax on the bonus until April 15th of the next year when he or she files the return.

Changing year-ends is fairly easy. The IRS does not even require advanced approval to change year-ends. All you have to do is file the short year tax return.

Again, you must review this with your tax advisor because there is annualization of income that must take place, which is not a big deal but you better check it out before you file the short year return. In addition, if you have any loss carry-overs or other attributes, they might be impacted by filing for the new year-end.

Good Luck.

Larry Kopsa CPA

WHERE IS MY REFUND?

I filed my 2008 taxes and was supposed to get a refund. Is there a way that I can check the status?

Ted

Ted, the IRS has made checking the status of your refund pretty easy. If you already filed your federal tax return and are due a refund, you can check the status of your refund online. Just go to www.IRS.gov and click on Where's My Refund?

Where’s My Refund? gives you online access to your refund information. If you e-file, you can get refund information 72 hours after IRS acknowledges receipt of your return. If you file a paper return, refund information will be available within three to four weeks.

When checking the status of your refund, have your federal tax return handy. To get your personalized refund information you must enter:

• Your Social Security Number (or Individual Taxpayer Identification Number).


• Filing status (Single, Married Filing Joint Return, Married Filing Separate Return, Head of Household, or Qualifying Widow(er)).


• Exact refund amount shown on your tax return.

I hope that you get your refund soon.

Larry Kopsa CPA

MY 2008 INCOME IS HIGHER. DO I STILL GET A STIMULUS CHECK FOR 2009?

I had an unusual situation in 2008 that boosted my income from all sources (gross and AGI) by about $15,000 over normal (to over $100K). $11,000 of that went direct to Uncle Sam (I withdrew $ from IRA to pay tax bill on 2007). Does that mean zero stimulus package payment for me and my husband? Is there an appeals process for special situations?

Nancy

Nancy, sorry, no appeals are built in, but you may not be in a bad spot. I presume that you are referring to the 2009 stimulus, not the 2008 stimulus. (It would seem that we should be pretty stimulated with all of this so called stimulus that they are throwing around). Anyway, here is the deal on the 2009 law.

· Since you are an employee you will get the stimulus through a reduction in your payroll taxes. The money will come though a higher payroll check estimated at about $13 per month. You will get this no matter what.
· The IRS gave your employer new payroll withholding payments. You should probably have seen an increase in your net payroll check.
· When you file your 2009 tax return (by April 15th of 2010) you or your tax preparer will determine whether or not you qualified. If you did not qualify, you will have to pay the money back with your 2009 1040.
· Since you are married, in order to qualify, your adjusted gross income (AGI) for 2009 would have to be under $150,000. The additional money that you made in 2008 makes no difference; it is just your 2009 AGI.
· If you are wondering what you’re AGI is, for 2008 it is on line 87 on the bottom of page one of your 1040.

Please let me know if you have any other questions or if your question was on the 2008 stimulus.

It is a pleasure serving you.

Larry Kopsa CPA

LET'S THINK ABOUT THIS

WHEN SHOULD I START TAKING SOCIAL SECURITY BENEFITS?

Larry, do you think I should start drawing Social Security at age 62?

Bill

Bill, deciding when to start drawing Social Security has too many variables for me to give you a correct answer. There is a very good article addressing this issue in the AARP website: http://bulletin.aarp.org/yourmoney/socialsecurity/articles/when_to_collect_social_security.html.
The article directs you to the Social Security Calculator that is located at: http://www.ssa.gov/planners/calculators.htm.

Remember, if you start taking Social Security early you can only have earned income of $14,160 in 2009, or you will have to pay back $1 for every $2 over this amount.

Your accountant or the Social Security Administration should be able to provide you with more assistance on this matter.

Larry Kopsa CPA

SPRING CORN PLANTING PROVIDES $3.5 BILLION STIMULUS IN NEBRASKA

(Nebraska Ag Connection) -- The Nebraska Ag Connection reports that "each year about this time, Nebraska corn producers invest approximately $1.4 billion in fuel, seed, fertilizer and other planting costs alone. According to the Nebraska Corn Board this investment in just a couple weeks' time multiplies by about 2.5 times into a $3.5 billion stimulus for Nebraska communities." This "provides not only a ripple effect in rural communities, but tremendous job opportunities in the agribusiness sector along with stimulus for the rest of the state," according to officials with the Nebraska Corn Board.

See the story at <http://www.nebraskaagconnection.com/story-state.php?Id=311&yr=2009>

THERE IS STILL CONCERN IN CONGRESS ABOUT AN EPA COW TAX

(Nebraska Ag Connection) -- The Nebraska Ag Connection reports that Senator John Thune (R-SD) has criticized an announcement from the Environmental Protection Agency (EPA) "that could result in the implementation of new regulations on carbon dioxide and methane gases, including the creation of a 'cow tax.'" The story states that Thune believes "this is the first step in a slippery slope that could result in implementation of a tax on all CO2 emissions." According to the story, in March, Senator Thune and Senator Charles Schumer (D-NY) introduced S. 527, a bipartisan bill that would prevent the government from imposing a "cow tax" on farmers and ranchers across the country.

The bill was introduced after the EPA last year discussed regulating greenhouse gases, a move that could include requiring farmers to purchase expensive permits. Thune says the "cow tax" would cost South Dakota farmers an estimated $367 million -- or $175 per dairy cow, $87.50 per beef cow, and $20 per hog. "S. 527 is cosponsored by Senators John Barrasso and Mike Enzie, both of Wyoming; Kit Bond and Claire McCaskill, both of Missouri; Sam Brownback and Pat Brown, both of Kansas; Chuck Grassley of Iowa; Mike Johanns of Nebraska; and Amy Klobuchar of Minnesota." See the story at <http://www.nebraskaagconnection.com/story-state.php?Id=297&yr=2009>

WHAT'S IN THE STIMULUS PACKAGE FOR AGRICULTURE?

A lot of farm owners were disappointed by the Economic Stimulus Package. Unless you are in one of the industries earmarked for funding, such as construction, green tech or transportation, there aren’t a lot of provisions that specifically help you.

So it would be easy to dismiss the Stimulus bill. But if you did, you’d be missing out on two key provisions that can bring your company a real competitive advantage.

Although we have had these provisions off and on in the past, if it would not have been for the Stimulus bill, we would not have had them in our tax planning tool box in 2009.

o Section 179 of the Federal income tax code allows you to write off certain expenditures in a single calendar year, instead of depreciating them over a number of years – giving an immediate tax benefit for 2009. Businesses can deduct up to $250,000 for purchases of equipment, including computer hardware and off-the-shelf (i.e., non-custom) software, in 2009.

o To the extent that you cannot take the Section 179 deduction, you may be able to claim a bonus first-year depreciation of 50% of the remainder of the cost of the items purchased.

The beauty of these two provisions in the Stimulus bill? They give small businesses extra incentive to invest in themselves. You take larger tax write-offs for the year in which you make your purchases, instead of spreading those write-offs out over several years.

Think of it as the government subsidizing your purchases. Here is an online Section 179 calculator, where you can quickly calculate the net cost of equipment after tax deductions.

A word of warning, each person's circumstances are different and the Section 179 rule has a number of requirements. Contact us to get qualified tax advice tailored to your circumstances. It will help you make smarter business decisions.

WANT TO SEE PRESIDENT OBAMA'S TAX RETURN?

Drudge has a link to download the 43 page pdf copy of the Obamas' 2008 income tax returns, showing their income of almost $2.7 million. Maybe I need to write a book.

Minor picky point - This tax return is for 2008, before they took over the White House. Yet, look at what they showed as their occupations for 2008.

WHY SHOULD I EXTEND MY RETURN PAST APRIL 15TH?

Before I drop my tax return in the mail I have a question. I heard you speak last year at the IBS show in New York City, and if I remember correctly you said that it is a good idea to extend filing the return until October 15th. Why should I wait?

T.R.

T.R., extending a return depends on your situation. We extend 100's of returns every year. I always extend my return. Don't forget, this is an extension of time to file, not an extension of time to pay. We don't extend returns just to give us more time to finish the returns. We have most of the returns ready to go, but rather than send to the IRS we hold them until the extended due date.There are a few reasons that we like extending the returns:

• First, when we file your tax return, we have in effect closed out any options we have for the year. This includes items we have made elections on or how to depreciate equipment, taking fast depreciation, capitalization of certain items, etc. Waiting until September/October 15, 2009 gives us a chance to determine whether or not the elections we make at this time are correct.
• The second reason is, supposedly there is less chance of being audited if you do not file your tax return immediately. According to some experts, in order to start the audit process, most 2008 tax returns are chosen for audit by September 1, 2009. Since your return will not be filed, you will not be part of the “audit lottery.”
• We extend your returns because if an earlier year’s return should happen to be audited before we file the extended return, the Internal Revenue Service will not have the current return to look at.

Larry Kopsa CPA

HOW TO FILE AN EXTENSION

I am a procrastinator. I need more time to file my return. How do I get an extension?

Inez

Inez, remember you can get an extension of time to file, but not an extension of time to pay.

You can get an automatic six-month extension of time to file from the IRS by filing Form 4868, Automatic Extension of Time to File. You must submit the request by April 15. You can get a copy of the form on http://www.irs.gov./

The extension gives you until October 15 to file the tax return. If you think that you owe taxes, you should make a payment when you file the extension.

Remember, if you owe money and don't pay with the extension, you will owe interest on any amount not paid by the April deadline, plus a late payment penalty if you have not paid at least 90 percent of your total tax.

You did not say what state you are in. You should check with your Department of Revenue to determine how to extend your state tax return.

Larry Kopsa CPA

INSTALLMENT AGREEMENT WITH THE IRS

Help! I owe money to the IRS and can't pay. I think I heard you talk about an extension agreement with the IRS. Help!

Teddy

Teddy, don't you just hate this time of year. You can get an installment agreement with the IRS. The good news is that it is automatic if you owe under $25,000. There are two ways to request the agreement.

You can use the Online Payment Agreement (OPA) or

Fill-in Request for Installment Agreement, Form 9465 and file with your return.

Of course the government is not going to let you get by without getting a little more money out of you.

The IRS charges a user fee to set up your installment agreement. The user fee for new installment agreements is $105 and $52 for agreements where payments are deducted directly from your bank account, along with interest on the unpaid balance.

If your income is below established levels, based on the Department of Health and Human Services poverty guidelines, you can apply for a reduced user fee of $43.

Larry Kopsa CPA

I CAN'T PAY MY TAX BILL. NOW WHAT?

I hope that you can help me. I have not filed my tax return and I do not have enough money to pay. What are the penalties? Am I going to jail?

Carrie

Carrie, I am sorry about your problem. Don't worry, you are not going to jail. You should consider requesting a payment plan from the IRS. There is a hefty interest rate, but no penalties.
There are penalties if you do not file your return and pay the tax by the due date. Here is what you need to know about failure-to-file and failure-to-pay penalties.

1. The failure-to-file penalty is generally more than the failure-to-pay penalty. So if you cannot pay all the taxes you owe, you should still file your tax return and explore other payment options in the meantime.
2. The penalty for filing late is usually 5 percent of the unpaid taxes for each month or part of a month that a return is late. This penalty will not exceed 25 percent of the taxpayer’s unpaid taxes. As you can see, this is a rate that is only charged by the Soprano's. A bank loan is much cheaper.
3. If you file your return more than 60 days after the due date or extended due date, the minimum penalty is the smaller of $135 or 100% of the unpaid tax.
4. You will not have to pay a failure-to-file penalty if you can show that you failed to file on time because of reasonable cause and not because of willful neglect.
5. In addition to the penalties above, you will have to pay a failure-to-pay penalty of ½ of 1 percent of your unpaid taxes for each month or part of a month after the due date that the taxes are not paid.
6. If both the failure-to-file penalty and the failure-to-pay penalty apply in any month, the 5 percent failure-to-file penalty is reduced by the failure-to-pay penalty. However, if you file your return more than 60 days after the due date or extended due date, the minimum penalty is the smaller of $135 or 100% of the unpaid tax.

So the answer is, round up as much money as you can because the penalties are huge and non-deductible. In addition, you need to start thinking about 2009 tax. You do not want to end up in the same situation at the end of this year.

Larry Kopsa CPA

CREDIT AND DEBIT CARD FEES USED TO PAY TAXES MAY BE DEDUCTIBLE

As I reported in a recent blog entry although it is possible to charge the amount you owe for taxes on your credit card the cost is very expensive and we normally advise that you do not take this option. However, should you use your credit card you should know that the IRS just announced that the fees you pay may be deductible. Here is the announcement that came out April 7, 2009.

Larry Kopsa CPA

WASHINGTON — Credit or debit card convenience fees charged for paying federal individual income taxes electronically are deductible for some taxpayers who itemize, the Internal Revenue Service announced today. Federal law bars the IRS from paying any fees associated with these credit or debit transactions. Card processors normally charge taxpayers for convenience fees when they use their credit or debit card to pay taxes. Fees vary but average about 2.5 percent of the tax payment.

In reassessing a previous position, the IRS decided that the convenience fees associated with the payment of federal tax, including payment of estimated tax, can be included as a miscellaneous itemized deduction. However, only those miscellaneous expenses that exceeded 2 percent of the taxpayer’s adjusted gross income can be deducted.

Not everyone who pays the fees will be able to deduct them. Taxpayers first must be eligible to file a Form 1040 Schedule A to itemize their expenses. And, taxpayers must have enough miscellaneous expenses to exceed the 2 percent threshold. These expenses include items such as tax preparation costs, job search expenses and unreimbursed employee expenses.

SHOULD I PAY TAX WITH MY CREDIT CARD?

I just found out that I own a ton of money to the IRS. Can you pay your tax balance with a credit card? Is this a good idea because I would get credit card points?

T.

The answer is yes, but there are huge fees involved. We don't advise the use of credit cards. The fee is generally $3.49 plus 2.49% of the amount charged. In addition the credit card will be charging you interest of 18% or higher until you pay them off. You would be better off borrowing the money from the Sopranos.

Larry Kopsa CPA

I DON'T QUALIFY FOR TUITION TAX CREDIT. I HEARD THAT THERE WAS A DEDUCTION I COULD TAKE.

Because my income is too high, I don't get the credit for my son's tuition. I heard that there was a deduction I could take.

Twila

Twila, you are correct. You can take up to $4,000 for post secondary education. The good news is that you do not have to itemize to get the write off. If you are in a 33% federal and state tax bracket this will save you $1,320 in taxes.

Below are ten important facts about this deduction that the IRS has on their website..

1 You do not have to itemize to take the Tuition and Fees deduction. You claim a tuition and fees deduction by completing Form 8917 and submitting it with your Form 1040 or Form 1040A.
2. You may be able to claim qualified tuition and fees expenses as either an adjustment to income, a Hope or Lifetime Learning credit, or – if applicable – as a business expense.
3. You cannot take the tuition and fees deduction on your income tax return if your filing status is married filing separately.
4. You cannot take the deduction if you are claimed, or can be claimed, as a dependent on someone else's return.
5. The deduction is reduced or eliminated if your modified adjusted gross income exceeds certain limits, based on your filing status.
6. You cannot claim the tuition and fees deduction if you or anyone else claims the Hope or Lifetime Learning credit for the same student in the same year.
7. If the educational expenses are also allowable as a business expense, the tuition and fees deduction may be claimed in conjunction with a business expense deduction, but the same expenses cannot be deducted twice.
8. You cannot claim a deduction or credit based on expenses paid with tax-free scholarship, fellowship, grant, or education savings account funds such as a Coverdell education savings account, tax-free savings bond interest or employer-provided education assistance.
9. The same rule applies to expenses you pay with a tax-exempt distribution from a qualified tuition plan, except that you can deduct qualified expenses you pay only with that part of the distribution that is a return of your contribution to the plan.
10. IRS Publication 970, Tax Benefits for Education, can help eligible parents and students understand the special rules that apply and decide which tax break to claim. The publication is available at www.IRS.gov or by calling 800-TAX-FORM (800-829-3676).

I hope that this helps.

Larry Kopsa CPA

I CAN'T GET ONE OF MY W-2'S

Larry, I hope you can help me. I need to file my return by March 1st and I am trying to get my information ready to do my tax return, but I can’t get a W-2 from a company I worked for early in 2008. Now what do I do?

Jerry

Jerry, I am sorry that you are having problems. You did not mention if the company is out of business or if they are just not following the law. You should have received a Form W-2, Wage and Tax Statement by February 2, 2009.

Here is what we advise people to do that can’t get their W-2:

1. Contact your employer.

If you have not received your Form W-2, contact your employer to inquire if and when the W-2 was mailed. If it was mailed, it may have been returned to the employer because of an incorrect or incomplete address. Tell your employer that you have been advised to contact the IRS if you do not receive the form. That usually triggers their attention.

2. Contact the IRS.

If you still do not receive your W-2, contact the IRS for assistance at 800-829-1040. When you call, have the following information:

• Employer's name, address, city, and state, including zip code;
• Your name, address, city and state, and Social Security number; and
• An estimate of the wages you earned, the federal income tax withheld, and the period you worked for that employer. The estimate should be based on year-to-date information from your final pay stub or leave-and-earnings statement, if possible.

3. File your return.

You still must file your tax return on time even if you do not receive your Form W-2. If you have not received your Form W-2 and have completed steps 1 and 2 above, you may use Form 4852, Substitute for Form W-2, Wage and Tax Statement. Attach Form 4852 to the return, estimating income and withholding taxes as accurately as possible. There may be a delay in any refund due while the information is verified.

Form 4852 is available on the IRS Web site, www.irs.gov or by calling 800-TAX-FORM (800-829-3676).

DEDUCTIBLE MEDICAL EXPENSES

At one of your tax seminars you gave out a list of medical deductions that are often missed. Could I get another copy?

T.S.

Here you go. Remember this list is no means all-inclusive. Also for some items you need a doctor to sign off.

1. Acupuncture
2. Alcoholism
3. Attendant to accompany a blind or deaf student
4. Artificial Teeth
5. Birth Control Pills
6. Braille Books and Magazines
7. Capital Expenses – computerized data bank payment
8. Car or car equipment for disabled person to drive
9. Chiropractor
10. Contact Lenses – premiums for replacement of
11. Dental Treatment – including fluoride treatment
12. Drug Addiction expenses
13. Eyeglasses – non prescription sun glasses to protect sensitive eyes
14. Laser Eye Surgery
15. Lamaze Classes
16. Health clubs dues for mental condition
17. Hearing Aids and parts for
18. Home Care – services provided by a person other than a registered nurse.
19. Lead-Based Paint Removal
20. Legal Fees to authorize mental health treatment
21. Mattresses: boards designed for arthritic patient
22. Medical Services – long distance even if closer care available
23. Nursing Services – value of room provided for nurse
24. Orthopedic shoes
25. Reclining chair for cardiac patient
26. Special Education
27. Sexual dysfunction treatment
28. Stop-Smoking Programs
29. Telephone for the hearing impared
30. Vision correction surgery
31. Weight loss programs

Larry Kopsa CPA

AUDIT PROOF YOUR AUTO DEDUCTION

A recent Tax Court case serves as a reminder and warning...taxpayers who can't substantiate their auto expenses will be denied a deduction. In the court case, a taxpayer who traveled for business and clearly was entitled to a deduction could not produce adequate evidence to substantiate his mileage, and the court denied him even a partial deduction.

If you take auto deductions and are audited one of the first things an IRS auditor will look at is documentation of mileage. The auditor realizes that most people don't take the time to meet the auto documentation rules. You can "audit proof" your return if you know and follow the rules.

Here is a are the documentation requirements:

The IRS approves four methods to track business miles. All of them require "adequate records" or other sufficient evidence: to support business use. This means logging mileage at least weekly. If you are not using the "mileage method" you must keep receipts for all expenses over $75.

1. "Brute Force." Record every business mile for the year. Divide by the year's total miles to calculate your Business Use Percentage (BUP). (If you use more than one car for business this is the method that you must use.)
2. "90 Days." Record business mile for a "typical" 90-day period. Calculate BUP for that period and use it for the entire year.
3. "First Week." Record business miles for the first week of each month and calculate the result for the entire year.
4. "Simplified." Record the starting and ending mileage for a 90-day period. Record personal and commuting miles for that period and assume all the rest are for the business. Calculate BUP and use it for the entire year.

NEBRASKA GOVERNOR SIGNS BILL LIMITING IRRIGATION WELLS

(Associated Press/journalstar.com) -- The AP reports that Gov. Dave Heineman "has signed a bill meant to help limit the number of well permits issued in Nebraska's lower Platte River basin." LB483 passed on a 45-0 vote and "Heineman signed it Monday. It goes into effect immediately." Members of local NRDs "have expressed support for the law."

See the story at <http://www.journalstar.com/articles/2009/04/06/news/politics/doc49da4d5e5959b748634454.txt>

YOU HAVE UNTIL APRIL 15TH TO MAKE AN IRA CONTRIBUTION

If you qualify to make an IRA contribution you have until April 15th. Here is a primer of the top ten things you should know about money you put aside for retirement in an IRA.



1. You may be able to deduct some or all of your contributions to your IRA and you also may be eligible for a tax credit equal to a percentage of your contribution.

2. Contributions can be made to your traditional IRA at any time during the year or by the due date for filing your return for that year, not including extensions. For most people, this means contributions for 2008 must be made by April 15, 2009.

3. The amount of funds in your IRA are generally not taxed until you receive distributions from that IRA.

4. To figure your deduction for IRA contributions, use the worksheets in the instructions for the form you are filing.

5. For 2008, the most that can be contributed to your traditional IRA generally is the smaller of the following amounts: $5,000 or the amount of your taxable compensation for the year. Taxpayers who are 50 or older can contribute up to $6,000.

6. Use Form 8880, Credit for Qualified Retirement Savings Contributions, to determine whether you are also eligible for a tax credit.

7. You cannot deduct an IRA contribution or claim the Credit for Qualified Retirement Saving Contributions on Form 1040EZ; you must use either Form 1040A or Form 1040.

8. To contribute to a traditional IRA, you must be under age 70 1/2 at the end of the tax year.

9. You must have taxable compensation, such as wages, salaries, commissions and tips. If you file a joint return, only one of you needs to have compensation.

10. IRS Publication 590, Individual Retirement Arrangements, has information on the amounts you will be eligible to contribute to your IRA account.



Larry Kopsa CPA

TAX NUMBERS VERSUS FINANCIAL NUMBERS

Larry, my banker wants to know why the balance sheet of the tax return does not equal the balance sheet shown in my financial statements.

Tom

Many bankers get confused by this. They need to realize that the purpose of the tax return is to determine how much tax you should pay, that is all. The financial statements are used to determine your true financial position. Tax laws are different than financial laws.

In your case the reason that the tax return varied from the financial statements is that the tax law requires a different method depreciation (not even called depreciation but rather Accelerated Cost Recovery System ((ACRS)) than Generally Accepted Accounting Principles (GAAP).

Let me give you an example. The tax law allows us to depreciate $250,000 of equipment in the year of purchase. The law allows us to write off this large amount to encourage the purchase of equipment and thereby supposedly fueling the economy. In my example the net assets on the tax return due to this transaction would be $0 (Purchase of $250,000 less ACRS of $250,000). But for financial statement purposes, taking normal deprecation the asset is worth $225,000 so the financial statement would show $225,000 (purchase price of $250,000 less normal depreciation of $25,000).

I hope that this helps.

Larry Kopsa CPA

MIDLANDS FARMERS BORROWING MORE MONEY

(Omaha World-Herald/Omaha.com) -- The Omaha World-Herald reports that "Midlands farmers are borrowing more to pay for seed, fertilizer, fuel and other supplies but less for equipment and land, an Omaha economist said Wednesday in Washington, D.C." Jason Henderson of the Omaha branch of the Federal Reserve Bank of Kansas City, "told a House of Representatives subcommittee that weakness in the farm economy could hurt farmers’ creditworthiness and tighten credit in rural areas." But Henderson noted that rural areas have healthier economies than urban areas and that "deposits in agricultural banks continue to grow. ... He expects less long-term borrowing for farm equipment and land in 2009 but more short-term operating loans." Farm production costs increase an average of 2% a year "but in 2008 they increased 11.7%, mostly because of fuel-related supplies." See the story at <http://omaha.com/index.php?u_page=1208&u_sid=10600689>

WHERE IS OUR PRIVACY?

Check & Block Your Drivers License

This is upsetting. Are we getting closer to "Big Brother" from George Orwell's book 1984? Thought I should pass it along. Where is our privacy? .Now you can see anyone's drivers license on the Internet, including your own!

I just searched for mine and there it was... Picture and all! Thanks Homeland Security Privacy, where is our right to it? I definitely removed mine; I suggest you do the same... go to the web site and check it out. Just enter your name, City and State to see if yours is on file.

After your license comes on the screen, click the box marked "Please Remove." This will remove it from public viewing, but not from law enforcement http://www.license.shorturl.com/