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Y2K
It's Not So New
This was translated from a Latin scroll dated 2BC.
Dear Cassius:
Are you still working on the Y zero K problem? This change from BC to AD is giving us a lot of headaches and we don't have much time left. I don't know how people will cope with working the wrong way around. Having been working happily downwards forever, now we have to start thinking upwards. You would think that someone would have thought of this earlier and not left it to us to sort out at the last minute.
I spoke to Caesar the other evening. He was livid that Julius hadn't done something about it when he was sorting out the calendar. He said he could see why Brutus was so nasty.
We called in Consultus, but he simply said that continuing downwards using minus BC won't work and, as usual, charged a fortune for doing nothing useful.
Macrohard will make yet another fortune out of this I suppose. The money lenders are paranoid of course! They have been told that all usury rates will invert and they will have to pay their clients to take out loans.
As for myself, I can't see the sand in the hourglass flowing upwards. We have heard that there are wise men in the East who have been working on the problem, but unfortunately, they won't arrive until it's all over.
I've heard there are plans to stable all horses at midnight at the turn of the year as there are fears they will try to run backwards.
Anyway, we are still working on this blasted Y zero K problem.
- Plutonius.
Seriously, Y2K is real and it is approaching rapidly. Are you Y2K ready?
Call Randy at 872-1122 for more information.
Mileage Rate Goes Down?
It would seem that everyone has seen the price of gasoline rise; it's hard to drive a vehicle and not notice the changes at the pump.
However, in the opinion of the Internal Revenue Service the cost of operating a vehicle is declining. The IRS has reduced the amount allowed as deductible vehicle expenses from 32.5 cents per mile to 31 cents per mile effective January 1, 1999. The Service later changed the effective date to April 1, 1999.
This seemingly simple change could trigger taxable income to the unsuspecting employee whose employer reimburses for the use of the employee's vehicle.
If the employer continues to reimburse at the 32.5 cent rate the employee will be "earning" a taxable 1.5 cents for each reimbursed mile.
It seems that nothing is simple, less is logical. For a more in depth look at business expenses and the reimbursement plans of employers call Tony at 872-1122.
Tax season's behind us and we want to take this opportunity to thank you for your support and the confidence you have placed in us.
Randy, Tony, and our team; Marlene, Matt, Rose, and Sharla are looking forward to continuing to provide the quality service you deserve.
Thanks again!
IRA WITHDRAWALS WITHOUT PENALTY?
IRA withdrawals by individuals under the age of 59 and one half are generally subject to a Federal "penalty" tax equal to 10% of the funds withdrawn.
There are, however, four situations under which the withdrawals may be exempt from the penalty.
- If the funds withdrawn from the IRA are redeposited in an IRA within 60 days of withdrawal.
This allows for a short-term use of the funds but there are some withholding requirements.
- If the funds are withdrawn in "substantially equal installments" as opposed to a lump sum amount. This option would allow an individual to "annuitize" their IRA and not pay any penalty. There are, naturally, specific rules that must be observed.
- If the funds are used to pay for "qualified higher education expenses" for the individual, spouse, child, or grandchild. The expenses include tuition, books, fees, & supplies at a post secondary education institution.
- If the funds are used to purchase a "first" home for the individual, child, grandchild, parent or grandparent. To qualify as a first home the individual must not have owned a home for the two years immediately preceding acquisition of this home.
To discuss IRA option further call Randy @ 872-1122
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