BNGIowa

Seeing from Another's Perspective

2010-01-19T10:23:17-06:00

It has been a long, cold winter. This is the view out my window today. I suppose it is pretty, but it is hard to think of it that way. Beauty is in the eye of the beholder. Gee, that is so true this winter.

Looking at things from more than one point of view can be hard, but helpful. When someone asks for your point of view, can you explain it? Do you really try to see someone else's point of view. Agree to disagree can be a copout.

New Year's Resolutions. Pick One

2010-01-06T14:13:21-06:00

Image via Wikipedia

Everyone knows the drill. You make New Year's Resolutions and bet on how long it's gonna take you to fall off the wagon. I just wanted to share what I've learned over the past couple years.

2008: I was feeling a little guilty for not reading enough. My New Year's Resolution was to read 2 books a month for the entire year. By the end of November, I'd read 24 books and people were telling me to stop reading and start doing. In short, I was addicted to my books. Reading was now a habit.

2009: My doctor had told me that my Body Mass Index was a little high. That's a polite way of saying "You're fat". My all-time high was 210 lbs. I weighed in at 196 on January 1 of last year. To achieve a healthy BMI, I needed to be under 175. Now, I am really lazy. So, there was no exercise involved. I just watched my portions for the first half of the year. After being diagnosed with hypertension in July, I started watching my sodium intake. It's amazing what happens when you start reading nutrition labels. The only processed food I have in my house now is Cheerios (because they are supposed to lower cholesterol). I weighed in again on Dec 31...173 lbs.

So, now I've got to figure out what my resolution is for this year. But, I think the key is to pick one and only one thing to focus on. Once you've experienced success, it makes you more confident that you can tackle anything.

So, when can I start depreciation?

2009-12-28T06:11:00-06:00

In a recent Tax Court Summary Opinion, it was held that the placed in service date, not necessarily the purchase date, is what controls the depreciation and expensing deductions.

In the opinion, a music business owner bought pieces of equipment over a two-year span, but didn’t use the items in his business until they were connected and integrated, which happened in the third taxable year. In the third tax year, the taxpayer claimed a section 179 deduction and computed his depreciation deductions accordingly.

The IRS contended that the equipment was placed in service in the two years in question because the petitioner tested some of the equipment before the third year. The IRS also argued that the equipment was ready and available for its specifically assigned function at that time. Therefore, the IRS believed the taxpayer’s ability to take the section 179 deduction was limited.

However, the Tax Court agreed with the taxpayer that the equipment was not used until the third year and was therefore placed in service that year. Although the equipment was tested by the taxpayer to become familiar with it, the equipment was not fully functional until it was interconnected in the third year. The Tax Court stated that individual components are treated as single property for tax purposes when they are functionally independent. Regardless of the amount of testing petitioner performed on each individual component, the equipment was not capable of performing its assigned function until interconnected and capable of supporting the operation of the studio. Each piece of equipment was thus essential to the operation of the studio as a whole and was not useful or able to be used to operate a business by itself.

Accordingly, the Tax Court held that the equipment purchased in the two-year span was placed in service in the third year and the taxpayer is entitled to the depreciation and section 179 deductions claimed on his tax returns.

For more information on this tax topic or other tax issues, please contact Brent McClure at Kiesling Associates LLP.

Health Coaching - The New Necessity

2009-12-25T14:16:36-06:00

Just watch the television for any 30 minute period of time any day and you are guaranteed to see the next 'hot' thing in becoming slim, having more energy, and retarding the aging process. There is now so many quick fixes that one can become overwhelmed and actually in worse shape than before. The options for nutrition, fitness and supplements is confusing and even dangerous when you are not educated on these subjects. Improper implementation, the wrong combinations, inappropriate workouts for your body type and condition and not focusing on the fundamentals will inevitably endin poor results, frustration and possible complications.

To say the least, the average American needs to have some guidance and leadership when looking to achieve health results that last and actually create a greater level of function. With this being said, a qualified health coach/advisor is a necessity for anyone looking to make quality change in their health and life.

Health coaches are found in many different forms and levels of education. Some health coaches have a certification in a specific line of health promotion such as nutrition, fitness, mental health, etc. Others can have a wider variety of training with a combination of the fore mentioned topics. Still others, such as specialized chiropractors, have a doctorate level education in the previous topics along with biomechanics, physiology, neurologic health, child development and successful implementation strategies to maximize results. Based upon training of the coach, your level of help will differ dramatically.

What one should look at when considering a health coach are the following;what are you wanting to accomplish, how much time do you want to devote, how bad do you want to achieve your results, how many resources do desire to have at your disposal, what types of facilities do you want to have access to, how much do you want to invest in your health and who would you feel confident in trusting your health with.

The bottom line is this: if you want results, you NEED a coach. Just like elite level athletes have specialized coaches to reach their goals, you need them too. It's just a matter of what you want and how important your health is to you.

Make the investment in your health this year. Just like Cousin Eddy says on 'Christmas Vacation', "It's the gift that keeps on giving!" This investment in your health will always 'keep on giving'.

For more information visit www.maxlifeiowa.com for a complete list of upcoming programs and opportunities to learn more about how to protect your most important asset, your health.

Be Careful What You Ask For

2009-12-22T08:07:30-06:00

When I was little, 4 or 5, all I wanted for Christmas was a set of white doll furniture. The kind for a baby doll, not a Barbie doll. Barbie dolls weren't even invented until the next year. I saw the toy furniture on a shelf at the local store and really, really wanted it. Well, Christmas morning, I got it. I don't actually remember the tree or opening the gift. But I do have a clear memory of telling my friend that I got it. And she didn't. I think I felt like the most special child on Santa's list.

When I was older, maybe 11, I asked for an electric organ. It was expensive and extravagant. I didn't want it as badly as the doll furniture, but I thought it would be cool. Well, Christmas morning, I got it. I was shocked. That was the year I realized that my parents would do what was necessary to get the gifts on my and my siblings' Christmas lists. I felt like the luckiest kid in the world. But, I felt a big responsibility. I had to learn how to play the instrument. It was hard. I had no musical training. I couldn't read notes and using the numbers in the organ music book was pretty hard. I took more care with my Christmas list every year since.

I know now, that I was a lucky kid. I had great parents. I have many, many wonderful Christmas memories. I think that is what makes Christmas so special, the memories.

I hope you all get just what you want for Christmas and I hope you all want what you get.

Which One Are You?

2009-12-17T11:25:11-06:00

The world around us is crazy! Most of Americans live a life that is 100mph everyday wtih very little time for the things that are truely important to them. For some reason we have decided to put our faith, family and health at or near the bottom of the list of priorities. Unfortunately, we have put work, our social lives and the 'things' in our life at the top of the list. For some this may be fulfilling for a period of time but long term this never results in happiness and success. Just ask Tiger!

My question for you is which one are you? Are you a person who truely values and sets aside the time to address the 'real' priorities in life or are you fixated on the insignificant things that create more stress and dis-ease on a daily basis?

Be honest with yourself. What do you spend your money on? What is the majority of your time spent on? What do you go to bed thinking about at night? Where do your thoughts wander to during your day? Do you feel fulfilled and happy during your days?

This is not meant to be depressing, rather, it is meant to make you think about your life and hopefully make you more aware. Your degree of awareness in your life ultimately determines the choices you make and life is all about thousands of choices everyday.

I challenge all of you to take the time to sit down before the beginning of this new year and take an evaluation of your life and your priorities. What is important to you? What are your core values? How much time, energy and money do you put towards each of them?

From these questions, get an idea of where you are at. Knowing this you can then start to put a plan of action together to make this next year more 'centered' on the BIG things in life, the things that leave a smile on your face and a feeling of joy and fulfillment. You MUST invest in YOUR life.

Take the time...You ARE worth it!

Be Clever, Be Grateful and Practice

2009-11-25T08:24:22-06:00

I subscribe to several online newsletters. One is from Trilix Marketing Group. Some of my friends work there and told me about their newsletter. I am thankful for all my friends.

I received the Thanksgiving issue of the newsletter yesterday. It struck a cord with me. The message of thanking clients and suppliers is common, but this was clever. That made me read it, the whole thing.

Clever and well designed. Those are things that motivate me.

Also yesterday, I caught a clip from the Dr. Phil show that struck a cord too. He was advising the parents of a 3-year-old who couldn't get the kid potty trained. They tried everything and were at their wits end. He said they just had not found their child's "currency" yet. In other words, his motivation.

The dad's face lit up. He thought Dr. Phil would tell him what motivated his kid and then he could just do that. But Dr. Phil said he didn't know what the boy's motivation was and that was up to the parents to find out.

These two seemingly unrelated things made me think, wouldn't it be nice if our customers would just tell us what motivates them? Some people react to clever marketing that is tied up in a well designed package. I do. I react to value and excellent service, most people do. But wouldn't it be nice to know that one magical "currency" that will get each customer to act?

I listen and ask questions. One customer told me that my talent for asking good questions was what impressed him the most. He was an excellent customer, I knew what he wanted and delivered. A 3-year-old won't be so forthcoming.

I have always thought that customer service is a lot like parenting. I do my best to find out what motivates each customer and then provide what they need. It is a great feeling when it all comes together.

On this day before Thanksgiving, I am filled with gratitude for my life. It would not be so rich without the wonderful people I have met throughout my career. My customers have taught me a lot. I am thankful.

Of course, I am most grateful for my family. They are my true motivation. My kids turned out pretty great and have given me three grandsons. I am a better grandparent than I ever was parent. Practice, it really works.

Talk Smart

2009-11-17T08:09:57-06:00

What a way to wake up. As I was preparing for the day, I had Good Morning America on the TV. I think Robin Roberts and Diane Sawyer are wonderful. They are smart and interesting. While watching the show, Barbara Walters showed up on the screen. She was promoting her interview with Sarah Palin. In an excerpt from the interview, Palin said the words: Bull Crap and My Bad.

Any interview coach would cringe. I cringed. Barbara Walters said she cringed.

While I would love to see a woman president in my lifetime, I want that woman to be competent. Actually, I want her to be beyond competent. That goes for a man too.

To at least appear competent for any job, my advice is don't use words like bull crap and my bad.

General Roth IRA Rules

2009-11-05T08:59:00-06:00

While no deduction is available for contributions made to a Roth IRA, you may be entitled to a credit (called the “saver’s credit”) against your tax liability for your contributions. Earnings on the contributed amounts build up tax-free and it's fairly easy to qualify for tax-free distributions for retirement. Here's how the Roth IRA works:

Contributions. For 2009, you can contribute up to $5,000 to a Roth IRA (as long as you have compensation for the year at least equal to the contributed amount). The $5,000 limit will be increased when the cost-of-living index warrants it. Individuals age 50 or older can make additional contributions of $1,000. Thus, the limit is $6,000 a year for people who will be age 50 (or older) during 2009. Contributions for 2009 must be made by April 15, 2010.

However, the maximum contribution allowance must be reduced by any contributions (deductible or nondeductible) you make to “regular” IRAs.

Unfortunately, there are some limits on Roth IRA contributions. For single taxpayers, if adjusted gross income (AGI) is $120,000 or more, no contribution can be made to a Roth IRA. If AGI is between $105,000 and $120,000, the $5,000 maximum contribution is phased out (reduced) according to a formula. For married taxpayers filing jointly, no contribution can be made if AGI is $176,000 or more, and the $5,000 maximum (per spouse) is phased out for AGIs between $166,000 and $176,000. For married taxpayers filing separately, the allowable contribution is phased out for AGIs between $0 and $10,000.

You may be allowed a credit against your income tax equal to a percentage of your Roth IRA contribution if your AGI doesn't exceed certain levels (which are much lower than the phase-out AGI levels above).

Contributions can be made to Roth IRAs even if you are a participant in a qualified plan and even if you reach age 70½.

Distributions. “Qualified” distributions from a Roth IRA are tax-free. Thus, you can avoid tax on Roth IRA earnings forever (i.e., even at distribution). A distribution is qualified if made once you reach age 59½, upon death or disability, or for first-time homebuyer expenses (up to $10,000 per lifetime). However, a distribution is not qualified if made within the five-year period beginning with the first tax year you made a contribution to a Roth IRA.

A nonqualified distribution is treated first as a nontaxable return of contributions. To the extent a nonqualified distribution exceeds contributions it becomes taxable and is also subject to a 10% penalty under the regular early withdrawal rules (i.e., the penalty will not apply if the distribution is made once you reach age 59½, or upon death or disability, or in other limited circumstances).

Qualified rollover contributions. You may be able to roll funds over from a regular IRA into a Roth IRA so the post-rollover income can grow tax-free in the Roth IRA. (Converting a regular IRA into a Roth IRA is treated as such a rollover.) You can roll funds over from a regular IRA to a Roth IRA only if your AGI, calculated with specified modifications, does not exceed $100,000 in the rollover year. Any funds rolled over will be taxed under the regular IRA distribution rules as if there were no rollover. The 10% early withdrawal penalty will not apply to the rollover. However, if the rolled over funds are withdrawn within the five year period that renders them taxable, the 10% penalty will apply to the withdrawal. (Beginning in 2010, the $100,000 AGI ceiling on conversions from a traditional IRA to a Roth IRA will be removed.)

Ordering rules apply if a Roth IRA contains conversion amounts (possibly from different years) as well as other contributions. The regular Roth IRA contributions are treated as withdrawn first and then converted amounts, starting with amounts first converted. Withdrawals of converted amounts will be treated as coming first from amounts already included in income. Earnings are treated as withdrawn after contributions. For these purposes, all Roth IRAs will be treated as a single Roth IRA.

Certain elements of the Roth IRA can be complicated. Nonetheless, many taxpayers can benefit significantly from Roth IRAs. Please give Brent McClure at Kiesling Associates a call if you would like to discuss these matters further.

Stupidity

2009-10-28T10:00:00-05:00

A certain theme came up in my conversations this past year. At a certain age, over 50 let's say, does every generation think the world is in decline because people are stupid?

Recently, someone answered that by pointing out that certain generations actually did experience devastation as a result of stupid decisions, such as, the Roman Empire and the Great Depression.

Will my generation be another? Will yours?

How do we eliminate stupidity? Better education is usually the answer. However, I think better parenting is the key.

I heard a story on TV about a man who wrote a book and was quite successful. He was one of the Lost Boys of Sudan. He was asked how he could overcome the horror he experienced. He said he had a "joyful" childhood and he never forgot it.

I have heard the human brain compared to at tape recorder. The tapes we hear over and over in our childhood are the most powerful.

Want better service? Train a child.

Want better customers? Volunteer at a school.

Concerned about the world? Rescue a child.