Cashless Society-Never See One Red Cent

There are probably plenty of people today that think the moves that are being made to a cashless society are good ones. They get their paycheck directly deposited into their bank account and then use their debit card to make purchases.

If they have truly set up their own little cashless society they probably pay their bills online as well. They never see one red cent, they never hold a dollar bill in their hands anymore and they do not even have a checkbook either.

Everything they do and buy is with that little plastic card they get from the bank.

I for one still like the idea of having some bills and coins in my pocket, it makes me feel more secure. That may sound silly but I work hard for my money and like to see some of it on occasion.

There is even a more advanced form of being able to make purchases on the rise today as well. Cell phones.

You have most likely seen the commercial of the guy sitting in his chair, then realizing he has to go to the bank he gets up and gets into his hat and coat only to realize once more that all he has to do is take a photo of both sides of his check and send the photo to the bank to make his deposit. Then he removes his hat and coat and sits back down.

I agree that this sounds like a neat idea but then I think, why has he not just set up direct deposit with the company he works for? Maybe this works for third party checks as well but they make the commercial seem like it is his weekly paycheck.

I guess that in this ever growing, ever changing digital world this is called progress.

Then there are all of those restaurant and retail store gift cards and reloadable cash cards, too. Some of the cash cards are not reloadable but the idea is still there. You can usually purchase one of these cards for one of three set denominations from $25 to $100.

They are put out by the two major credit card companies Visa and Mastercard and can be used just about anywhere and for anything. All that is required of the user is to register the card online or by phone to activate it. Much like activating a credit card.

If everyone has the ability to pay for things they want electronically, almost no one would need a credit card. Buying small things on credit could possibly become a thing of the past.

Major purchases like buying a house or a car would still require a person to have a good credit rating but maybe consumers would stop getting themselves in way over their heads if they found it easier to live within their means.

Having instant access to their bank balances and the ability to pay using their cell phone could make the idea of a cashless society a reality sooner than anyone thinks.

Basics Of The Stock Market

Many new investors jump into the stock market based on hearing the hype of how it?s possible to make great money investing this way. They may have heard of a friend who made a bundle with day trading or a colleague who has a hot stock tip and so they figure they?ll jump into the market too.

Before you begin investing, it?s important that you understand at least the basics of the stock market.

While investing in stocks can help you to build a great investment portfolio, if you?re not careful about your strategies, you could also find it can be a great way to lose a lot of money too.

There are two sections to the stock market. The primary market is where shares are created by companies and generally offered to the public via an IPO (Initial Public Offering). The secondary market is where established stocks are exchanged and traded among investors without the involvement of the company issuing the stocks.

When people think about investing on the stock market, they tend to be talking about the secondary market.

Basics of Stock Market Shares

Shares, or stocks, are individual pieces of ownership of much larger companies. When companies need to raise capital, then sell off little portions of the company so that investors may become partial owners of that company. Each time you buy a stock, it represents a share of ownership in a publicly listed company. You become a shareholder. As you increase the number of stocks you have in one particular company, you increase the percentage of ownership you have.

As a shareholder, you are entitled to your share of the company?s earnings. These are usually paid as dividends, although not all companies offer dividend payments. You?re also entitled to exercise any of the voting rights that might be attached to that stock, however you don?t have a say in the daily operational running of that business.

Basics of Stock Market Pricing

There are several factors that can affect the price of stocks and you might notice that the price of stocks changes every day. While the price can be partially dictated by supply and demand, there are also other factors that can affect the overall price too. Economic changes, unemployment or bad management in the company are all individual factors that can also affect the pricing.

The price you see listed on any particular stock is based on the perceived profitability of the company and not the value of the company. This means the stock can often be priced based on what investors believe the stocks are worth. The value of the company is called the market capitalization.

When you see on the news that the market rose or fell by a number of points, it?s important to understand that not every single stock listed on the exchange followed the same movements. The index you see reported is a representation of a number of stocks and presented as a single figure to give a general idea of the market movements as a whole.

However, there will always be individual companies that move contrarily to the main market sentiment. It?s this contrary movement that day traders watch for, trying to find the next stock pick that will rise in value and gain profits for them.

Basics of Stock Market Investing

There are several types of stock market investment strategies. Day trading is growing in popularity as a way to smaller investors to begin building capital. The basis behind day trading is to buy a stock in the early part of the trading day and hopefully sell it again at a profit before trading closes.

Long term investors tend to purchase many different stocks in a diversified range of companies in various sectors to spread their risk. These investors tend to hold stocks for longer periods of time, allowing the value of their stocks to appreciate. They also receive dividend payments, either in the form of a check or as a dividend reinvestment plan, where the company issues stocks to the value of the dividend payments to the shareholder to add to his portfolio.

Homeprofitcoach discusses the importance of the Copy Paste Click Profits method for any business

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Apply These Tips To Your Home Business Plan

Home based businesses can be ideal if they are set up and maintained properly. The following are a set of tips to de-mystify the process of setting up a home business, and running it smoothly. Everyone considering this type of undertaking should arm themselves with lots of solid advice.

Take regular breaks throughout your day, but don’t get distracted by the home environment. Don’t begin complicated home improvement projects or take long, personal calls. Take active breaks to refresh your body and mind, for example a bit of exercise or work in your garden.

Unless you live alone, be considerate of the others in your household. Don’t let your work take over common spaces or invade someone else’s personal area. Don’t treat your roommates or family like employees. Make your needs known, but remember that this space is a home first and an office second.

Even though you are working at home, it is important that you establish a proper business schedule. By making a proper schedule and sticking to it you are showing others that you are serious about what you are doing. It also shows them that you can be reliable and dependable.

To reduce distractions keep your office off limits to children. Have set work hours that enable you to run your business and still have time for your family. Older children should understand not to disturb you while you are working. For your business to succeed your family needs to be supportive and respectful of your work schedule.

It is essential to give your web site address to as many search engines as possible, even the small, unknown ones. You want to do everything you can to increase the likelihood that a potential client will come across your site. This step does not take long and could have positive results for you in the future.

Promote your home business by running a contest on your web site. It will attract potential customers to your page and possibly result in new sales. Get the word out about your promotion by advertising on social media sites, contest boards, ezines and search engines. The return you receive, will be well worth the extra effort involved.

Use your web site to advertise a free product for visitors. This will increase traffic on your site and give potential customers the ability to sample your product. Although it may cost a little money in the beginning, you should make up for it in sales from impressed new customers.

Join an affiliate program and sell your products through them as well. You can search online to find several that will meet your needs. This allows your home business to exchange affiliate links and reach a broader customer base, leading to increased sales for your product. It is quick and easy to sign up.

Receive consult from a tax professional who is experienced in dealing with your type and size of business. There are several different tax requirements for different businesses, and there could very well be special statuses and credits given for your type of business – so a consult with a professional is always a good idea.

Keep everything as organized as possible to make it easier for you to keep your bills paid on time and your customers happy. Find a place with few distractions that you can dedicate to only your home business supplies. It will make the time that you spend working more efficient.

There is no such thing as doing too much reading up and researching on how to make a home based business successful. So much needs to be in place and well managed before a home based business is even a possibility. The rewards will be well worth the extra effort.

Advice To Follow When Building A Home Business

Starting a business can provide you with additional income or take the place of full-time job. Dedicating time to your business will turn it into a solid investment. Read this article to find some advice about running a home business to help you get where you want to go.

If you are running a home based business that involves sales, be sure you know and are comfortable with your product. You need to be able to answer questions from your clients quickly and correctly. Being knowledgeable and honest about your product will help clients to trust you, and result in repeat business.

Always keep an eye on your operation costs and keep them to a minimum. You have already begun this path by choosing to use a home office, but keep operation costs in mind in all of your choices. This way you can keep your product costs as low as possible, giving you a competitive advantage against other businesses.

You need a post office box for business mail. Avoid using your home address when posting online. Taking this step allows you and your family to remain anonymous.

When running a business from your home location make sure you have a reliable internet service provider. Because most of your business will likely entail itneraction with customers online, an unreliable ISP would bring about a fate tantmount to death for your experience. There are several ISP’s out there, so make sure to browse around before settling.

If you are good with crafts, you can start a home business by selling the things that you make. Not only will you make extra money, but you will be having fun in the meantime. Many people like to give unique, handmade items as gifts, which means this can be a good market for you to target.

Don;t forget to get business cards. In addition to your business name, address, and phone number, make sure to add your website address and business email. Vista Print is one business that offers your first order of business cards free-of-charge. Always carry them with you, and hand them out liberally.

Involve your family as a team and play for home business success. Your extroverted spouse might be eager to do cold calls and handle clients. Your daughter may be great for articles and ad copy, while your son could create cool logos, web sites and brochures. Above all, they must have fun.

Provide free products for others in the community to use as prizes. Not only does this increase your reputation for generosity in your area, but it gives your products exposure. The individuals who win may not have heard of you before but having the opportunity to sample your product could turn them into a customer.

To find success with a home business, you need to get comfortable with selling yourself. As a home business operator, you must continue to promote your enterprise at all times. Your customers must feel that the products that you offer are the high-quality products that they want. Understanding how to sell yourself and your company is a primary key to success.

You need to make sure that you get business cards made for your home business right away. It is important to have the business cards so that you can hand them out whenever you meet potential clients. The card should contain the company name, phone number and address at the very least so that the clients are able to easily contact your business.

Operating your own business can give you a degree of flexibility that many people find appealing. Your ability to clearly define both financial and personal goals you want from your home business will help direct your actions so that your business is likely to meet your goals. The information provided here should give you the basics you need to see just how far you can push your own business venture at home.

Advice That Every Home Business Owner Should Know

You need to have some knowledge of what to do and expect from a home business. You need to know what resources are available to you and who can provide you answers as to what you need for the future of your business. The tips below can help you start.

Do not get caught up in multi-level marketing and get-rich-quick schemes. Your home business should be a legitimate idea, that sells a product or service. If you start gearing yourself towards what seems too good to be true, then you are spinning your wheels. Devise a solid business plan of your own and attain the resources to make it come to life.

You should never try to work for a company that has ethics and values that do not mirror your own. It is hard to convince someone to invest in a business idea or product that you are selling if they can tell that you are not a fan of it yourself.

If you are just getting started it is a good idea to offer something free to your customers. Many people do not want to invest their money into something they are not sure of, so offering them free products/services will give them an idea of what you are selling and let them know the quality of it.

Obtain all necessary permits and licenses. If you sell a product, you may need a state sales-tax certificate, and if customers visit your home, you may need an occupancy permit. License and zoning laws can be complicated but can usually be found online. If you’re unsure, it’s best to hire a lawyer. Obeying the laws will help you avoid being fined or even losing your business.

If it is possible, attempt to start your home business before leaving your current job. This will allow you to have a steady salary while you begin building the new company. This will also give you a cushion in the unfortunate, but realistic possibility of failure or even complete bankruptcy.

Take the time to showcase your knowledge of your product to others. Write online articles and put your contact information in them. Search for seminars that you can participate in and think of other opportunities to become involved. The reputation of your home business will increase the more you put yourself out there.

Use an attention-grabbing name for your website domain. There are many different websites and you want to make sure that yours stands out from the rest. A catchy name can be the perfect thing to get traffic to your site, it will be easy for a potential customer to remember and easy for them to access.

Find a home business venture that you are actually interested in! This will benefit you in the long run! Otherwise, working from home will be much less enjoyable and a more difficult task. To make a success determine your interests, goals and capabilities – before you become involved in any business!

Your home business website will benefit from things such as search engine optimization. Make friends with people in the same industry, so you can swap banner links with each other. This boosts your page rankings on major search engines, making your website a higher priority among search results. This is an excellent way to boost traffic.

As you have seen in the above tips, there is a lot of knowledge, you can acquire before starting and maintaining a home business, and it is this knowledge that can help you with your future. Do everything you must to ensure the success of your home business for the future.

Simple Ways to Obtain and Use Moneymaking Keywords

Hunting for the most profitable keywords is no joke to many internet marketers and website owners. In fact, people will pay good money just to be able to obtain these moneymaking keywords because they know that these can translate to incredible earnings. If you’re a little apprehensive about paying for keywords, take heart. There are some cool resources on the internet you can use for free. That’s right ? at no cost. Here are ways how you can make use of stuff online to hike your popularity factor:

Find out how certain keywords perform from search engines.

Before anything else, remember that not all moneymaking keywords are right for you. What’s the point of using keywords pertaining to techno gadgets if your website is all about scrapbooking?

Find out which keywords work best for your website and then use search engines such as Google and Yahoo!. These are free resources you can use on the internet that will give you an idea of how many searches are performed on a given keyword/s and/or keyword phrase. The number of searches you’ll find will help you determine the kind of keywords that will land you on the SERPs or Search Engine Results Pages.

Submit your website for indexing.

It’s tough to get noticed online especially if you’re just starting your website. Be proactive about letting others know about you by submitting your site to the most popular search engines. The three most popular search sites are Google, Yahoo! and MSN. Go to their websites and add your URL address, start building your site’s traffic volume and watch your income grow.

Link up.

Another great internet resource that is used by many website owners is linking. You can exchange links with other websites who belong to the same industry as you or are at least related to the type of business you have.

Linking with other websites is free, fun and very productive. Consider it as being referred to by a friend of a friend. If you link your website to a reputable site, traffic from that site can get directed your way. Imagine receiving just 10% of the traffic from a site that receives 2,000 visitors a day. That’s 200 more clicks on top of the ones you already receive on a regular basis ? from one site alone.

Be careful, though. Some sites with less-than-good reputation can damage yours as well. Search engines prefer linking sites that offer quality. If you’re linked up with a site that pulls you down, consider asking that site to remove links to your website.

Use your own resource.

We mean your common sense. Some keywords have a lifespan while others shine brightest during a particular season. Keywords such as ‘Halloween costumes’ and ‘costume masks’, for example, are much more in demand during the months of September and October. When November and December come along, you probably don?t need a free resource on the internet just to find out that certain keywords related to Thanksgiving and Christmas are much more in demand.

Keywords are some of the most valuable resources you can use online. They can help you build your business and drive traffic to your site. They can even be a direct source of income for many individuals.

Learn everything you need to know about how to use keywords to increase your site’s exposure from ‘Keyword Research’ from The Barking Videos series. Using keywords to increase your site’s traffic can be tricky and you’ll need all the help you can get. Learn as much as you can so you don?t waste your time on keywords that will do nothing for your bottomline.

Tap Into The Hidden Potential Of Internet Marketing



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The internet marketplace is ground that is constantly shifting. From one year to the next, platforms for selling come and go. Some improve, others decline. The following tips can help give a clear view of the marketplace as it is now, and how to keep an eye out for new markets as they open up.

When marketing a product on the internet, it is important to overcome the natural skepticism of your audience. Most users on the internet are extremely nervous about everything they read, and will not purchase anything using a credit card unless they feel very safe. A key part of marketing your product, then, is making sure they feel that level of security.

Throw in a surprise complementary item with purchases from your website. For example, if you sell an MP3 player, you can throw in a pair of cheap earbuds in a matching color. If the product being shipped doesn’t come with batteries, through a few in. Your customer will appreciate it because no one else is doing that!

Look online for local bloggers of the destination you are visiting and contact them personally for recommendations. Bloggers post stories to offer others their expertise, and often they are happy to respond to a personal request (especially a request that has a hint of flattery). Be sure to be specific in your questions.

Turn your customers into future sales by offering them rebates on their own purchases for every several referrals they bring in for you. You could set it up so that, for every four copies of your eBook they refer others to buy from you, their own price will be refunded. This is a terrific way to build buzz and generate sales.

Check what websites link to your competitors to find out which links are best for you to pursue. External links leading to your site are weighted based on how popular the linking site is. Identify the most popular sites linking to your competitors and see if you can secure links from them for your own site.

You should set aside time to thoroughly test every aspect of your website weekly. Broken images, links to 404 pages and errors in ordering forms will only frustrate your customers and hurt your image. Customers may be inclined to leave an order in progress if a website is annoying to use.

Just because your business is a local, physical business, doesn’t mean you don’t need a web presence. Make sure to build a basic web site with lots of information about your company and market that to local clientele. Even in local economies, many people turn to the internet for information on where to go and who to buy from. They can’t come to you if you aren’t there.

Whether you have been selling on the internet marketplace for years or are just beginning, these tips should help provide direction toward your future. It is a highly competitive marketplace. The more you know, the better you will be able to gain the right platform for your products.

Tips For Anyone In The Internet Marketing Field

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If you are planning on starting an online business or expanding an existing one, a successful internet marketing strategy is the key to such an effort. Knowing where to start can be intimidating, but there are a few basic ideas that will give you a head start. This article will teach you these basic concepts.

You should submit promotional materials and offers to online directories that list your service. If your website offers a free electronic periodical subscription, make sure you let search engines know about it. There are directories for free content of all varieties, so be sure to check them out whenever you post new content.

Pay attention to the design of your website. Use attractive colors and a menu that is easy to navigate. Visitors will spend more time on a website with nice colors and an original design. They are also more likely to remember your website and come back to it later. Make sure your menu is clear so that people can find what they want without getting frustrated.

Consider starting some sort of membership program for your website. This is a great internet marketing strategy that will attract more people to your site. You can offer special deals and members only newsletters. This will result in more customers that will continue to buy your products time and time again.

One great internet marketing tip is to personalize any email messages you send out to visitors. Configure your email system in a way that will use the recipients actual name when they receive an email from you. This will make it seem more personal and the recipient will have a higher affinity for your products.

Use your customers to your advantage by making them affiliates; this will increase your internet marketing and exposure. After a customer purchases a product from you, give them the offer of either discounts or commission for referring new customers to you. Just think of the traffic that would come to your site if you had 1000 customers working for you and driving traffic to your product.

Keep track of the different statistics of traffic on your site. Keeping track of all these little numbers can give you an overview as to what you might need to change in the future to give your site the best and most traffic that it can get. You want to know if you are getting a lot of traffic or none at all.

Try to get a video or audio interview with a representative of the product you are selling. Question them on how and why they came up with a particular product. Make sure the majority of the content is quality information and include just a smidgen of information regarding how to buy it.

Display advertising is a form of internet marketing that is widely used for branding. It may contain images, text or video and is kind of like a tv commercial form of internet marketing. They can be directly targeted, for example to a certain demographic or a computer user. The rate of display advertising is expected to rise in the next two years.

Make sure you keep a close eye on what advertising campaigns are making you money and which ones are not. It is a waste of money to continue to pour money into multiple campaigns when the reality is that some of them are not bringing you any results at all.

Internet marketing doesn’t have to be difficult. By applying these basic strategies, anyone can effectively market their business on the internet. Just use what you’ve learned from this article and before you know it, your efforts will result in an expanded customer base and a business with a solid foundation.

America’s New Tax Cuts & Jobs Act Public Law No. 115-97 Signed into Law December 22, 2017 “The First Major Overhaul of the American Tax System since 1986”

Subject: America’s New Tax Cuts & Jobs Act Public Law No. 115-97 Signed into Law December 22, 2017 “The First Major Overhaul of the American Tax System since 1986”

1. STANDARD DEDUCTION The Standard Deduction was nearly DOUBLED on Jan.1, 2018, to $12,000 on Single returns,

$18,000 for Headof-Household filers, and $24,000 on Joint returns.

Rates for 2017 were $6,350, $9,350 and $12,700 respectively. Congressional analysts say increasing the Standard Deduction will let more than 30 million taxpayers avoid filing a Schedule-A to itemize deductions, because the higher Standard Deduction would be greater than the amount they would have deducted on Schedule-A. Individuals age 65 or older get even higher standard deductions. Two 65-year-olds filing a Joint Return, for example, would add $2,500 to the $24,000 standard deduction for a total of $26,500. An Individual taxpayer 65+ would add $1,550, bringing the standard deduction to $13,550.

2. PERSONAL EXEMPTION Deductions Although the Standard Deduction will approximately double, Personal Exemption deductions will be SUSPENDED (i.e., eliminated). This “suspension” is scheduled to expire after 2025. Before 2018, taxpayers got a $4,050 deduction for each qualifying family member. As of 1-1-18, under the NEW law, those exemption-deductions will disappear. Examples of the financial impact that will have on taxpayers: Single filer will lose their one $4,050 Personal Exemption deduction, and will gain a $5,650 increase in higher Standard Deduction, so when combined. he/she would experience a $1,600 NET GAIN in TOTAL deductions. Family of four would lose $16,200 worth of Personal Exemption deductions (4 x $4050), and would gain an $11,300 increase in higher Standard Deduction, so when combined, they would experience a $4,900 NET LOSS in TOTAL deductions.

3. TAX BRACKETS The new law keeps seven tax brackets (same number of brackets as before) but with different rates & break points. The NEW RATES are: For INDIVIDUALS and MARRIED filing SEPARATELY: For MARRIED filing JOINTLY: 10% on income up to $9,525 10% on income up to $19,050 12% on income above $9,525 12% on income above $19,050 22% on income above $38,700 22% on income above $77,400 24% on income above $82,500 24% on income above $165,000 32% on income above $157,500 32% on income above $315,000 35% on income above $200,000 35% on income above $400,000 37% on income above $500,000 37% on income above $600,000 Here are the details of the breakdowns…

4 4. CHILD TAX CREDIT Starting in 2018, the $1,000 tax credit for each child under age 17 was DOUBLED TO $2,000, with $1,400 of the credit refundable to lower income taxpayers. Additionally, the package significantly increased the amount of income that may be earned before this credit begins to phase-out. The credit begins to phase out for Couples with Adjusted Gross Incomes over $400,000 (up from $110,000 in 2017) and $200,000 for Individual filers (up from $75,000). In addition to the enhanced Child Tax Credit, there is a NEW, NONREFUNDABLE credit of $500 for each dependent who is not a qualifying child – for example, an elderly parent or disabled adult child. This credit would phase out under the same income thresholds as above.

5. DEPENDENT CARE Plans The new law continues to allow working parents to set aside up to $5,000 pre-tax money in dependent care Flexible Savings Accounts to pay for child care costs. No change.

6. Tax Breaks for STUDENTS STUDENT LOAN INTEREST Deduction remains unchanged. The new law continues to allow a deduction up to $2,500 a year of interest paid on student loans. This deduction may be claimed by those who take the Standard Deduction, without need to file a Schedule-A to itemize deductions. But remember, this benefit phases out at higher income levels.

5 TUITION WAIVERS & DISCOUNTS: The value of these received by graduate students will continue to be treated as TAX-FREE. STUDENT LOANS that are DISCHARGED due to the borrower’s death or permanent disability, the amount discharged will NO LONGER be treated as TAXABLE INCOME. SECTION 529 PLANS now allow families to spend up to $10,000 a year from tax-advantaged 529 savings plans to cover the costs of K-12 expenses FOR PRIVATE OR RELIGIOUS SCHOOLS. Previously, tax-free distributions from those plans were limited to college costs.

7. HEALTHCARE EXPENSE Deductions The new law is actually a bit better than it was before. Un-reimbursed (out-of-pocket) medical expenses are now deductible to the extent that the total amount (for taxpayer, spouse and dependent children) exceeds 7.5% of adjusted gross income applies to BOTH 2017 AND 2018. (Prior to 2017, the threshold was 10%.) NOTE: This benefit is effective retroactively to Jan. 1, 2017. But, this tax change expires at the end of 2018, then reverting back to 10%, unless the law is either extended or made permanent by Congress before the end of 2018.

8. OBAMACARE-RELATED Taxation The new law indirectly REPEALS the “INDIVIDUAL MANDATE” – the requirement that demands that you either have certain health insurance or pay a penalty. The mandate remains UNCHANGED for 2018; however, as of Jan. 1, 2019 the “penalty amount is reduced to $0”, which essentially eliminates the impact of the mandate.

9. ALIMONY Tax Liability change … beginning in 2019 Under current law, alimony is tax-deductible to the payor, and is treated as taxable income to the payee. Under the new law, EFFECTIVE JAN. 1, 2019, the person Paying alimony will no longer be able to deduct the payments, and the person Receiving alimony will now receive it tax-free. (This is the same rule that has, and will continue, to apply to child support payments.) But we have a full year before the new law takes effect. The new law does not impact any currently existing divorce agreements, nor any signed at any time during 2018. It applies ONLY to divorce or separation agreements that are EXECUTED AFTER DECEMBER 31, 2018, thus, effective as of Jan. 1, 2019.

10. HOMEOWNER-RELATED DEDUCTIONS: MORTGAGE Interest: Under new law, the AMOUNT of DEBT on which homeowners can deduct MORTGAGE INTEREST for purchase of a primary or secondary residence, has been reduced to $750,000 (down from $1-million) for married filing jointly, and reduced to $375,000 for singles and marrieds-filing-separately. The lower limit applies ONLY to mortgage debt INCURRED AFTER DECEMBER 15, 2017, to buy or improve a principal residence or second home. Older loans are still allowed the $1 million cap. HOME-EQUITY LOAN Interest Deduction: The new law ELIMINATES all HOME-EQUITY Loan Interest deductions – a change which applies to both old and new home-equity debt. The law took effect on 1/1/18. SELLING A HOME: The law continues to allow you to shelter up to $250,000 of profit of the sale of a home (or $500,000 if you’re married), as long as you have owned and lived in the house for two of the five years before the sale. 6

11. AMT – the Confusing and Unpopular “Alternative Minimum Tax” The Alternative Minimum Tax (AMT) is a “parallel tax system” developed more than 40 years ago to ensure that the “very wealthy” paid at least some tax. Since that time the AMT has also snared millions of taxpayers who are not among the ‘very wealthy.’ But the extra, unanticipated tax revenue appealed to lawmakers, who refused to rein it in. Taxpayers who may fall into the AMT zone have to calculate their taxes twice, to determine which system applies. The new law does not eliminate the AMT for Individuals, but safeguards were put into place that will greatly limit the number of taxpayers ensnared by it, by hiking the AMT Exemption Amounts by 30%: 2017: Married/Jointly = $ 84,500 Single = $54,300 Married/Separately = $42,250 2018 Married/Jointly = $109,400 Single = $70,300 Married/Separately = $70,300 Additionally, the exemption phaseout zones start at much higher income levels… above $1 million for couples and $500,000 for Single people and Heads of Household.

12. Deductions for STATE and LOCAL Taxes (SALT) One of the most popular deductions for Individuals and Married taxpayers is SALT – tax write-off for amounts they paid in STATE AND LOCAL TAXES (SALT) – Income taxes, Sales taxes and Personal Property taxes. As of 1/1/18, the “Tax Cuts and Jobs Act,” SALT deductions are CAPPED at $10,000 – the maximum amount of state and local taxes combined, you may deduct. You can deduct any combination of state and local income or sales or residential property taxes, as long as the total does not exceed the $10,000 limit. Notice: Just as before, if you are subjected to the AMT (alternative minimum tax), state and local taxes are not deductible, unless you are engaged in a Business or a For-Profit activity. This provision is scheduled to expire at the end of 2025 unless it is extended or modified by law between now and then.

13. KIDDIE TAX Under the old law, passive INVESTMENT INCOME EARNED BY DEPENDENT CHILDREN under the age of 19 (or 24 if a full-time student) was generally taxed at the parents’ tax-rate, so the tax rate would vary depending on the parents’ income. Starting in 2018, such “unearned income by a minor” will be taxed at the same rates as Trusts and Estates … which will produce a much higher tax bill. The top 37% tax rate in 2018 applies to a child’s unearned income at $12,500. These changes are scheduled to expire after 2025, unless legislation prior to 2025 changes it.

14. CHARITABLE CONTRIBUTIONS CHARITABLE CONTRIBUTION DEDUCTIONS are preserved, with some changes. The AGI limitation on cash donations to qualified public charities and certain private foundations is INCREASED from 50% to 60%. Taxpayers who do not itemize will not be able to deduct any of their charitable contributions. Contributions in excess of 60% of AGI may be carried forward for up to five years.

15. CASUALTY-LOSS Deductions The new law restricts deductions by taxpayers who incur unreimbursed casualty losses that are not associated with a trade or business. As of 1/1/18, the law allows a deduction of such losses ONLY IF the loss occurs in a “FEDERALLY DECLARED DISASTER AREA.” 7 If you meet the requirement above, AND IF the amount of your loss is $500 or more, you may deduct the full amount of your unreimbursed losses. This deduction is available even for those who claim the Standard Deduction instead of itemizing deductions on Schedule-

A. 16. ITEMIZED DEDUCTION LIMITATIONS LIFTED for SOME Through 2017, upper income earners had restrictions on the dollar amount they could deduct on Schedule-A, but as of Jan. 1, 2018 those restrictions were lifted (i.e., no limit). This provision will expire as of 2026 unless it is extended or made permanent by future legislation. Under the new law, some formerly-allowed deduction categories are no longer approved for itemized deductions, are Tax Preparation Fees, Unreimbursed Employee Business Expenses, Brokerage and IRA Fees, and Theft Losses.

17. Unreimbursed Employee Expenses See 32, below. 18. ESTATE TAX (aka, “Death Tax”) is MODIFIED The new law DOUBLES the amount that can be LEFT TO HEIRS, TAX-FREE. As of January 1, 2018, up to $11.2 million for singles and about $22.4 million for married couples, may be inherited by heirs, tax-free. The amount will be adjusted each year based on inflation figures. Other aspects of the Death Tax remains unchanged. This tax change expires at the end of 2025, reverting to earlier levels, unless the law is either extended or made permanent by Congress during the next seven years.

19. ABLE ACCOUNTS EXPANDED ABLE is an acronym for Achieving a Better Life Experience Act, first passed in 2014. The new law EXPANDS the USES of these tax-advantaged accounts, which allow families to put aside up to $14,000 a year tax-free to cover expenses for a beneficiary with special needs. The money can be used tax-free for most expenses, and account assets of up to $100,000 don’t count toward the $2,000 limit for Supplemental Social Security Income benefits. Also, under the new law, ABLE beneficiaries will now be allowed to contribute their own earnings to the account once the $14,000 contribution limit for gifts by others has been reached. The law also allows parents and others who established a 529 plan for a disabled beneficiary to roll the money into an ABLE account for that individual. However, the rollover would count towards the $14,000 annual gift/contribution limit.

20. ROTH “DO-OVERS” The new law will make it riskier to convert a traditional individual retirement account (IRA) to a Roth IRA. Under the old law, you could reverse such a conversion—and eliminate the tax bill—by “recharacterizing” the conversion by October 15 of the following year. Starting in 2018, SUCH CONVERSIONS ARE NOW IRREVERSIBLE. The new law bars IRA owners who convert their traditional IRAs to Roth IRAs from later undoing the conversion and recovering the income tax paid on the switch.

8 21. Some 401(K) PLAN BORROWERS Get RELIEF The new law would give employees who borrow from their 401(k) plans MORE TIME TO REPAY the loan if they lose their jobs or their plan is terminated. Previously, borrowers who leave their jobs were usually required to repay the balance in 60 days to avoid having the amount outstanding treated as a taxable distribution. Under the new law, they will have UNTIL THE DUE DATE OF THEIR TAX RETURN for the year they left the job.

22. CAPITAL GAINS TAX Investors who have purchased stock and mutual fund shares at different times and different prices are still allowed to choose which shares to sell in order to produce the most favorable tax consequences. For example, you can direct your broker to sell shares with a high tax basis (basically, what you paid for them) to limit the amount of profit you must report to the IRS or, if the shares have fallen in value, to maximize losses to offset other taxable gains. The new law retains the favorable tax treatment granted long-term capital gains and qualified dividends, imposing rates of 0%, 15%, 20% or 23.8%, depending on your total income. Previously, your capital gains and dividends rate depended on your tax bracket, but with the brackets changing this year, Congress decided instead to set Income Thresholds. These are the tax rates as of Jan. 1, 2018: 0% rate will apply for taxpayers with taxable income under $38,600 on Single-filed returns and $77,200 on Joint returns. 15% rate applies for Single filers with incomes between $38,600-$425,800; for Joint filers with incomes between $77,200-479,000 20% rate starts at $425,800 for Singles and $479,000 for Joint filers. 3.8% surtax on net investment income kicks in for Singles with modified AGI over $200,000; and for Marrieds, over $250,000.

23. Misc. ITEMIZED DEDUCTIONS (Schedule-A) The new law REPEALS all miscellaneous itemized deductions that were subject to a 2%-of-AGI threshold. These include the write-off for Tax Preparation fees, Unreimbursed Employee Business Expenses, Brokerage fees, IRA fees, and Theft Losses. TAX CREDIT for the ELDERLY and the DISABLED, which is worth up to $1,125 to a qualifying low-income taxpayer, CONTINUES UNCHANGED. MOVING EXPENSES: The new law eliminates this popular deduction, which was available to itemizers and nonitemizers, allowed taxpayers to deduct the cost of a job-related move. Going forward, only members of the military are still able to claim it. PLUG-IN ELECTRIC VEHICLES: The tax credit CONTINUES UNCHANGED. BUSINESS TAX RETURNS

24. CORPORATE TAXES TAX RATE for C-CORPORATIONS now permanently slashed to a FLAT 21% effective 1-1-18. Previously, the top corporate tax rate was 35%. Due to the change in rates, some business owners may want to evaluate whether converting their business entity into a C-Corporation would offer tax advantages. State and Local Taxes (SALT): For taxpayers in a Business or operating a For-Profit activity, state and local Property taxes and Sales taxes will remain deductible. For example, if you own a residential rental property, you can continue to fully deduct property taxes paid on that property on Schedule E.] 9

25. PASS-THROUGH ENTITIES i.e. S-CORPs – PARTNERSHIPS – SOLE PROPRIETORS – and most LLC’s The vast majority of all Small- And Home-Based Businesses are “pass-throughs” – business entities that “pass” their income “through” to their owners for tax purposes, including Sole Proprietors and most LLCs who report business income on Schedule C with their Individual tax returns. Up until Jan. 1, 2018, business income that was “passed-through” to the partner, shareholder, member or soleproprietor, was taxed at that individual’s own marginal tax rate. THE NEW LAW NOW OFFERS SUBSTANTIAL RELIEF to individuals who own “PASS-THROUGH ENTITIES.” As of January 1, 2018, the Tax Act added Section 199A to the Tax Code, which provides a 20% deduction from the individual’s income tax rate for “Qualified Business Income” (QBI*) for all pass-throughs, including trusts and estates. * What is QBI? It is generally the net income from a business, minus some limited expenses, determined on a per-business (not per-individual) basis. Example: Let’s say your reported AGI (Adjustable Gross Income) is less than $160,000 ($315,000 for Married Filing Jointly). You now get an automatic deduction of 20% of your Qualified Business Income, before figuring your taxes. For a sole proprietor in the 24% bracket, for example, excluding 20% of their QBI from taxes, would have the same effect as lowering their overall tax rate to 19.2%. The changes to the taxation of passthrough businesses are some of the most complex provisions in the new law, in part because of lots of limitations and anti-abuse rules. They’re designed to help prevent gaming of the tax system by taxpayers trying to have income taxed at the lower passthrough rate rather than the higher individual income tax rate. For example, the 20% deduction mentioned above phases out for most pass-through entity owners with incomes in excess of $157,500 on an Individual Return, and $315,000 on a Joint Return For these reasons, owners of pass-through entities may well benefit from consulting with a professional tax preparer. At the end of the day, most individuals who are self-employed or who own interests in partnerships, LLCs or S-corporations will be paying less tax on their passthrough income than in the past. ONE BIG EXCEPTION: This 20% deduction on pass-through income, DOES NOT APPLY TO those entities in a “Specified Service Trade or Business.” What IS a “Specified Service Trades or Business?” The Tax Code says the term applies to “Service Businesses in Healthcare, Law, Consulting, Athletics, Financial services, or where the principle asset of the business is the unique reputation or skills of the business’s owner or employees.”

26. Business Entertainment Expenses ? NO-LONGER DEDUCTIBLE! Since 1994, qualifying business meals and entertainment expenses have been deductible, but only at 50% of actual cost. Now, the other 50% has also disappeared. As of Jan. 1, 2018, the Tax Cuts and Jobs Act has RESCINDED, ALL deductions under Tax Code Section 13304, P.L. 115-97, both for “Directly Related” entertainment and for “Associated” entertainment. This new provision applies regardless of the purpose of the meeting and/or nature of the business discussion. Prior to now, many entrepreneurs and other business professionals have used business meals as a 50%- deductible business-building tool. That is no longer an option. 10 In a Tax Bill that “overall is favorable to small business,” this bold move came as a complete surprise to many, and came without explanation. Although the loss of this deduction effects almost all small businesses, there has been surprisingly little mention of it in media coverage.

27. TAX-FREE “FRINGE BENEFITS” for EMPLOYEES PARKING and TRANSIT passes: Prior to 2018, employers could provide employees up to $260 per month for paid-parking or transit fares, and the expense was tax-deductible to the employer, and value was tax-free to the employee. As of 1-1-18, the same benefit continues to be tax-free to the employee, but is NO LONGER TAXDEDUCTIBLE to the employer, which will likely cause many employers to no longer provide the benefit. BICYCLE COMMUTER ‘bonus:’ Prior to 2018, employers could provide employees up to $60 per month for commuting to work on a bicycle, and (as above) the expense was tax-deductible to the employer, and income was tax-free to the employee. As of 1-1-18, the same benefit continues to be tax-free to the employee, but is NO LONGER TAX- DEDUCTIBLE to the employer, which will likely cause many employers to end the benefit. FREE or SUBSIDIZED MEALS in an on-premises dining facility such as a company cafeteria – the cost to the employer is now ONLY 50% DEDUCTIBLE as of 1-1-18. The cost will become TOTALLY NON-DEDUCTIBLE to the employer after 2025. PARTIALLY-PAID FAMILY or MEDICAL LEAVE provided by employers to workers will get a new Tax Credit generally equal to 12.5% of the amount of wages paid during the period of leave. The credit is increased for employers that pay workers more than half their normal wages while on leave. Note that there are lots of other rules and limitations to comply with. There’s a catch. The credit is temporary…applying only for 2018 and 2019. UNREIMBURSED EMPLOYEE EXPENSES (such as mileage for employee-use of personal vehicles, employee home-office expenses, etc.) ALL DEDUCTIONS for this category of expenses ARE SUSPENDED through 2025, as are investment expenses, tax preparation fees, and hobby-losses. These previously were deductible on Schedule-A, subject to a 2% AGI limitation.

28. PAYROLL WITHHOLDING (Form W-4) The new law is causing quite a ruckus in payroll offices around the country. Under the old law, the amount of tax withheld from paychecks was based on the number of Allowances employees claimed on W-4 forms; and, the dollar value of Allowances was tied to the dollar-value of the Personal Exemptions the worker claimed on his or her tax return (in 2017 that dollar-value was $4,050 for each personal exemption). But as of Jan. 1, 2018, PERSONAL EXEMPTION DEDUCTIONS have been SUSPENDED – which seems to mean that each Allowance claimed on a W-4 is now worth $0,000. So, there’s a mad scramble going on within payroll companies and departments, trying to figure out how to establish payroll withholding amounts under the new rules. Resolution coming: The new law orders the Secretary of the Treasury to come up with a new payroll withholding system, but in the interim, says 2018 withholding can be based on the old rules for now. Keep an eye out or more.

29. LIKE-KIND EXCHANGES Generally, an “exchange” of property is a taxable transaction, just like a sale, EXCEPT when investment or business property is traded for similar property. Any gain (profit) that would be triggered by the sale of such property is deferred in the case of a “like-kind exchange.” Up until now, this tax benefit has applied to assets such as real estate, as well as tangible personal property such as heavy equipment and art work. But as of 1/1/18, tax free exchange treatment under Section 1031 NO LONGER 11 INCLUDES PERSONAL PROPERTY, and is limited to real property. This means the new law restricts its use of like-kind exchanges to real estate only, such as trading one rental property for another.

30. CORPORATIONS NO LONGER SUBJECT TO AMT The new law permanently makes corporations no longer subject to the Alternative Minimum Tax, a “parallel tax system” developed more than 40 years ago to ensure that the “very wealthy” paid at least some tax. The new law ELIMINATES the AMT for BUSINESSES.

31. NET OPERATING LOSS (NOL) Deduction Beginning in tax-year 2018, the “two-year carry-back rule” is REPEALED in most cases, and in addition, the NOL deduction is generally limited to 80% of taxable income. NOLs may be carried forward to future years without limitation, in most cases.

32. BUSINESS-LOSS Deductions claimed on INDIVIDUAL RETURNS is now CAPPED. The amount of Trade or Business LOSSES that exceed a $500,000 threshold for couples and $250,000 for other filers, is NON-DEDUCTIBLE, but ANY EXCESS can be CARRIED FORWARD. Note this limitation applies after application of the current passive-activity loss rules.

33. Many other BUSINESS Dweductions are ELIMINATED or PARED BACK: ? Business Entertainment deductions – Gone! ? Country Club dues – don’s even try. ? 9% domestic production deduction (if you know what this IS, think of it as WAS, because it’s gone). ? Net Operating Losses can offset only 80% of taxable income, and NOL carrybacks generally prohibited. ? Tax-deferred Like-Kind Exchanges are limited to real property not held primarily for sale. ? Sexual harassment settlement payments are NOT deductible IF subject to a nondisclosure agreement. ? Attorneys paid in Contingency Fee cases: cannot deduct litigation costs until the contingency ends. ? Local lobbying expenses – Gone – Don’t even think about it.

34. Business ASSETS Depreciation There are enhanced write-offs for business asset purchases in the law. 100% bonus depreciation for many assets put into use during the year. The tax-break applies to assets put in service after Sept. 27, 2017, and is temporary… lasting until 2022 and then phasing out 20% each year thereafter. A higher cap on expensing business assets. It doubles to $1 million. More property is eligible for first-year bonus depreciation or expensing. Depreciation limitations on passenger automobiles are increased. For more info, see below…

35. SECTION 179 “ACCELERATED DEPRECIATION” – DEDUCTION LIMITS INCREASE As of 1-1-18, the annual deductions limit for Section 179 property was increased from $500,000 to $1,000,000. The DEFINITION of “SECTION 179 PROPERTY” has been expanded to include certain tangible property used in furnishing lodging, as well as roofs, heating, air conditioning and ventilation systems, fire protection, alarm and security systems installed on non-residential real property that has already been placed in service. 12

36. “LUXURY AUTOMOBILE DEPRECIATION” INCREASED For passenger automobiles placed in service after Dec. 31, 2017 (and for which the first-year depreciation deduction under Section 168(k) is not claimed), the maximum depreciation deduction for each of the first four years is approximately TRIPLE THE PREVIOUSLY AUTHORIZED AMOUNTS. First year in which the vehicle is placed in service, has increased from the old $3,160 to the new $10,000 limit. Second year depreciation nearly triples again, from $5,100 to the new $16,000 limit. Third year triples again, from the old $3,050 to the new $9,600 limit. Fourth year and beyond, depreciation is increased from $1,785 to the new $5,760 per year limit. TOTAL DEPRECIATION allowance for the first four years will now be $41,360 (compared to just $13,095 before the new tax bill) –a massive 316% increase in depreciation allowed.

37. Business DEBT The deduction that businesses can claim for INTEREST on BUSINESS-DEBT is LIMITED for large companies. Their interest write-offs are capped at 30% of adjusted taxable income, with disallowed interest carried forward. Businesses with $25 million or less of gross receipts, and real estate companies and certain regulated public utilities will be exempt. 38. TEACHERS’ (Small, but Special) Tax Break The tax deduction teachers can claim for using their own money to buy classroom supplies, REMAINS DEDUCTIBLE up to $250 per tax-year. No change. ENDNOTE: The comprehensive, 1,000-page TAX CUTS and JOBS ACT will, no double, receive numerous clarifications and refinements over the next few years. As changes are made, we will send you email updates at no cost to you. Stay Up-to-Date with CHANGES to Small- and Home-Based Business Tax Deductions by getting a FREE Subscription to “Tax Tips You Can Bank On” at Small-Business Tax Savings Learning Center Free and Low-Cost Tax-Savings Information for Small-Business Owners