Most economists are predicting the recession our economy has entered to last at least two years. Learning to cope with, and even capitalize on, a slow economy my mean the difference in remaining viable in your market or having to find a new line of work. If you manage to implement tactics that are successful in a slow economy you may find even more success than expected when the market returns. (See our article from our Fall Newsletter Growing Your Business for more).
Convincing Your Customers to Buy
As the market continues to slow one thing is for sure, your customers will become much more frugal with their spending. Understanding this is of particular importance if you are in the retail sales business, but the lesson can be applied to an industry. Your customers have less money to spend than they did this time last year, so it’s important that you convince them to spend their money with you.
Help them understand the alternatives to buying your product or service. For instance, if you sell cars let them know that putting off buying a newer, more efficient vehicle may mean higher fuel and maintenance costs down the road. Now is the time to help your customers understand why it is important for them to invest their money in your product or your service.
Recognize that your products and services are not only competing with others like your own. With your buyers in a frugal mindset, they will be comparing spending their money with you and their other desires. Again, if you sell cars your customers may be trying to decide if they want to put a down payment on a new car or make a contribution to their IRA. It’s your job to convince them that your product is the right choice.
Remember that even though your customers are thinking their purchases through more thoroughly, they will still be buying things that they feel the benefits of outweigh the costs. Help your customers justify their purchases by telling them about potential emerging savings, lower maintenance costs, or more features. It also helps to understand why your customer is interested in purchasing from you so that you will know what they find valuable about the product.
Another key is to understand your customer's timing. For instance, most people who are purchasing a car prefer to take their time to do some research so that they can make sure they get the car that they want. People who are purchasing air conditioners, on the other hand, are most often reluctant customers who are uninformed about the product and just wish to get the purchase over with. Understanding how your customers view their purchase will help you understand how to present the product in a favorable light.
What Does the Future Hold?
So, what can we expect once the economy does turn around? We can expect that some of the budget-conscience habits that buyers will form over the next few years will become permanent. Buyers who are in their twenties and thirties now are forming their buying habits in a much less secure economy than their parents did and it will likely affect their spending habits even after the markets recover.
It is unlikely that buyers who are forced to shop at large-scale retailers like Wal-Mart will return to the smaller retailers once the economy stabilizes. In fact, many of them will find that the quality of goods found at the big-box stores is adequate considering the price point. These shoppers are not likely to abandon the values they have come to expect at the large-scale retailers, in fact, they will likely search for similar values in other products.
The economic slow-down will also force all businesses to focus on customer service. With less money to spread around, the companies that focus on treating their customers right will remain viable while the others will fall by the way-side. Once the economy turns up, buyers will still expect the level of customer service to remain high.
As you prepare your business for lean times, keep these things in mind. They may just make the difference.
Source
http://www.kiplinger.com/businessresource/summary/archive/2008/customer-marketing-fuel.html
http://www.kiplinger.com/businessresource/forecast/archive/whats_next_for_retailers_081124.html
http://www.kiplinger.com/businessresource/summary/archive/2008/Spending_Sullivan.html
Thursday, December 18, 2008
Don't Micromanage Your Employees
Learning to manage your company is a trial and error process. There is no tried and true formula that works for each company or even for each employee in a company. There is, however,one management technique that you will be sure to want to avoid.
The most common mistake that many managers, especially first-time managers, make is to try and be involved in every aspect of the business. It is difficult to properly manage your business and your employees if you are constantly distracted with the small details of the day to day business. That is why you have employees in the first place. In fact, micromanaging your employees can actually hinder their performance. Scott Reeves of Forbes Magazine says “Micromanaging is the surest way to kill and employee’s enthusiasm. To succeed, employees need to know that they’re trusted and their work is valued. Micromanaging tells the employee just the opposite, and constant checks are as annoying as a fussy elementary-school teacher telling you to print your name and the date in the upper right-hand corner of every assignment.”
Allowing your employees to do their jobs has many benefits. First, you may find that they become much more productive without you leaning over their shoulder. Often times the presence of a supervisor will make employees hesitate to offer new ideas for fear of being shot down. Sometimes these new ideas can trigger efficiency and growth that would otherwise go undiscovered.
Delegating responsibility will also allow you to recognize the weak spots in your company. Occasionally when a died-in-the-wool micromanager finally decides to allow his employees some independence, things go south quickly. This does not affirm micromanagement as a viable management technique, but it does mean that the newly independent employees may not be up to the task of running the business.
Delegating responsibility to your employees will also allow you free time to pursue other aspects of business. Use your new found freedom to focus on finding new customers, start a new company, or improve your golf game!
Source
http://www.forbes.com/2006/02/01/training-employees-management-cx_sr_0202bizbasics.html
http://online.wsj.com/article/SB122566866580091589.html.html
The most common mistake that many managers, especially first-time managers, make is to try and be involved in every aspect of the business. It is difficult to properly manage your business and your employees if you are constantly distracted with the small details of the day to day business. That is why you have employees in the first place. In fact, micromanaging your employees can actually hinder their performance. Scott Reeves of Forbes Magazine says “Micromanaging is the surest way to kill and employee’s enthusiasm. To succeed, employees need to know that they’re trusted and their work is valued. Micromanaging tells the employee just the opposite, and constant checks are as annoying as a fussy elementary-school teacher telling you to print your name and the date in the upper right-hand corner of every assignment.”
Allowing your employees to do their jobs has many benefits. First, you may find that they become much more productive without you leaning over their shoulder. Often times the presence of a supervisor will make employees hesitate to offer new ideas for fear of being shot down. Sometimes these new ideas can trigger efficiency and growth that would otherwise go undiscovered.
Delegating responsibility will also allow you to recognize the weak spots in your company. Occasionally when a died-in-the-wool micromanager finally decides to allow his employees some independence, things go south quickly. This does not affirm micromanagement as a viable management technique, but it does mean that the newly independent employees may not be up to the task of running the business.
Delegating responsibility to your employees will also allow you free time to pursue other aspects of business. Use your new found freedom to focus on finding new customers, start a new company, or improve your golf game!
Source
http://www.forbes.com/2006/02/01/training-employees-management-cx_sr_0202bizbasics.html
http://online.wsj.com/article/SB122566866580091589.html.html
Wednesday, December 17, 2008
Voluntary Benefits Explode in Popularity
As our national economy continues to slip into recession, employers are beginning to scale back on health benefits in an effort to maintain their bottom line. As employers reduce their health benefits many are adding new, voluntary-based benefits for their employees. Voluntary benefits are traditionally offered in addition to benefits that are partially paid by the employer, but as the recession puts a squeeze on employers many are favoring the voluntary benefits to save money.
Voluntary benefits are also popular with employees. They offer many of the same advantages of employer-paid benefits such as streamlined administration and lower prices that are not available with consumer based products. Also, because payroll deductions for benefits are taken out before taxes, the cost of the benefit is reduced even further below the cost of comparable consumer based plans.
Increasingly, employers are also finding that offering voluntary benefits may aid with retention of current employees and recruitment of new employees. Employers are offering voluntary benefits ranging from traditional plans like accident, life, home, and auto coverage as well as new plans that offer shopping discounts, identity theft programs, wedding protection, and group legal plans.
If you would be interested in offering voluntary benefits to your employees, give us a call and we will design a package for you.
Source
http://www.kiplinger.com/businessresource/summary/archive/2008/benefits_HealthPlanWeek.html
Voluntary benefits are also popular with employees. They offer many of the same advantages of employer-paid benefits such as streamlined administration and lower prices that are not available with consumer based products. Also, because payroll deductions for benefits are taken out before taxes, the cost of the benefit is reduced even further below the cost of comparable consumer based plans.
Increasingly, employers are also finding that offering voluntary benefits may aid with retention of current employees and recruitment of new employees. Employers are offering voluntary benefits ranging from traditional plans like accident, life, home, and auto coverage as well as new plans that offer shopping discounts, identity theft programs, wedding protection, and group legal plans.
If you would be interested in offering voluntary benefits to your employees, give us a call and we will design a package for you.
Source
http://www.kiplinger.com/businessresource/summary/archive/2008/benefits_HealthPlanWeek.html
Small Business Wellness Program
Americans are bombarded day in and day out with news about the dismal economy. Very few industries remain unaffected and it is hard to imagine that anyone does not have the recession on their mind. Most analysts believe that we will not begin to see a recovery until at least 2010. With economic troubles ahead, many small businesses are focused on how to cut their expenses in an effort to maintain their bottom line. For most small businesses, one of their chief expenses is health insurance and we have designed a program that will allow companies to take steps to reduce their costs over the next few years.
Employee wellness has become a part of large businesses culture over the last ten years. Unlike most small businesses, many larger employers self-insure so the health of their employees is directly related to their bottom line. Since small businesses generally insure through large carriers, they do not have direct control over their insurance premiums, but the same principles that large businesses apply to employee wellness can help small businesses reign in their healthcare spending.
Our plan is to provide our customers with a turnkey wellness program designed around the federal government’s suggestion that Americans should get 30 minutes of cardiovascular exercise five times a week to maintain a healthy lifestyle and have each group provide a small incentive to their employees to encourage participation in the program. The benefits will not be immediate, but we believe that over a three year period our customers will see savings on their total healthcare costs, increased workforce productivity, a reduction in sick days, and lower employee turn-over. Our program will be offered free of charge for each of our clients as a value-added service.
Source
http://www.washingtonpost.com/wp-dyn/content/story/2008/10/13/ST2008101300741.html
Employee wellness has become a part of large businesses culture over the last ten years. Unlike most small businesses, many larger employers self-insure so the health of their employees is directly related to their bottom line. Since small businesses generally insure through large carriers, they do not have direct control over their insurance premiums, but the same principles that large businesses apply to employee wellness can help small businesses reign in their healthcare spending.
Our plan is to provide our customers with a turnkey wellness program designed around the federal government’s suggestion that Americans should get 30 minutes of cardiovascular exercise five times a week to maintain a healthy lifestyle and have each group provide a small incentive to their employees to encourage participation in the program. The benefits will not be immediate, but we believe that over a three year period our customers will see savings on their total healthcare costs, increased workforce productivity, a reduction in sick days, and lower employee turn-over. Our program will be offered free of charge for each of our clients as a value-added service.
Source
http://www.washingtonpost.com/wp-dyn/content/story/2008/10/13/ST2008101300741.html
The Universal Coverage Mandate and What It Means For You
The Universal Coverage Mandate and What It Means For You
President-elect Barack Obama’s sweeping victory in November has Democrats in Washington itching to pass healthcare reform as soon as he takes office. As it turns out, the Democrats in Washington are not the only ones. Recently the Associated Press reported that the trade group America’s Health Insurance Plans (AHIP), which represents 1,300 companies in the insurance industry, released a statement saying that they would support legislation requiring guaranteed coverage for every American if it included a an enforceable requirement that everyone have a policy. In addition, the Blue Cross Blue Shield Association, which represents thirty-nine companies that cover over 100 million Americans, released a similar statement.
What Does It Mean?
Essentially, by mandating that all Americans have coverage while guaranteeing that all Americans will be eligible for coverage, the private insurance companies would be able to spread the risk across a larger base of customers. Alissa Fox, vice-president of the Blue Cross and Blue Shield Association, said “Insurance works best when everyone is in the pool. You need healthy people in the insurance pool to help pay for the sicker individuals who are much more motivated to buy coverage.” This system would most certainly guarantee an increase in revenue for the private insurance industry, but that might not necessarily translate into higher profits. The insurance industry contends that any mandate for guaranteed issuance would have to be combined with a mandate for coverage. Ms. Fox told reporters that an individual mandate was an indispensable corollary of any approach forbidding insurers to reject applicants because of health status.
Private insurers fear the ramifications of guaranteeing coverage without mandating coverage for everyone. Donald Hamm, president of Assurant Health, said “If they know they can obtain coverage at any time, many will wait until they get sick to apply for it. That increases the price for everyone.” The insurers claim that in states that require guaranteed coverage, they have already seen these problems.
The Politics of Universal Coverage
Mr. Obama supported a universal coverage guarantee during his run for the presidency this year, but he stopped short of calling for a mandate to require every American to have health insurance. Many on Capitol Hill also question the feasibility of requiring coverage due to the high cost and the difficulty of enforcement.
Senator Charles Grassley, a Republican from Iowa, said that mandated coverage would likely inflate the federal budget deficit. He said, “Increasing the record-breaking deficit is not a legitimate option. Ignoring the burden of inefficient spending that health care places on our economy is also not an option.” Other members of Congress tend to agree. Grassley participated in a closed-door meeting on Capitol Hill with other Senators concerned over the direction of the nation’s health insurance industry, including Democratic Senators Max Baucus and Edward Kennedy as well as Republican Senator Orrin Hatch among others.
Alternatives to Federally Mandated Universal Coverage
The mandated universal coverage plan has found support on Capitol Hill with Democratic Senators and in the president-elect but not everyone in Washington is behind it. While just about everyone agrees that universal coverage should be the ultimate goal for our health insurance industry, not everyone agrees on how to get there. The Republican candidate for the presidency this year, John McCain, ran on a healthcare platform that opposed universal healthcare mandated by the federal government. McCain, and other conservatives in the Republican Party, believe that any federal health insurance program would be an overexpansion of government involvement in private industry. McCain proposed a consumer-driven model for the health insurance industry, spurred by tax credits from the federal government to encourage coverage.
Many insurance industry analysts tend to agree. They believe that government-based health insurance is generally much less efficient than private-based insurance. Matthew Coffina, an analyst with Morningstar, said “Government plans tend to be much less profitable than commercial insurance. To the extent that they’re insuring more people, it’s good. To the extent that they are insuring people through government options instead of through commercial options would tend to depress margins.”
Change Is Coming
Regardless of what happens on Capitol Hill in the next four years, we will see some sort of reform in the healthcare industry soon. Our nation cannot afford to continue on with our current arrangement. Each year healthcare costs become a larger and larger portion of our spending. Without some change in the current system, we will eventually be spending more money on healthcare than anything else. Our nation has to commit to improving our overall health along with reforming our healthcare system. This change will affect us all, so it is certainly any issue that deserves our attention.
Source
http://www.nytimes.com/2008/11/20/us/20health.html?ref=us
http://www.bloomberg.com/apps/news?pid=20601202&sid=axooOa9vVGnc&refer=healthcare
http://www.google.com/hostednews/ap/article/ALeqM5jplyo5XCZt-sbgL21ggOoqg5nC3QD94I8HP80
President-elect Barack Obama’s sweeping victory in November has Democrats in Washington itching to pass healthcare reform as soon as he takes office. As it turns out, the Democrats in Washington are not the only ones. Recently the Associated Press reported that the trade group America’s Health Insurance Plans (AHIP), which represents 1,300 companies in the insurance industry, released a statement saying that they would support legislation requiring guaranteed coverage for every American if it included a an enforceable requirement that everyone have a policy. In addition, the Blue Cross Blue Shield Association, which represents thirty-nine companies that cover over 100 million Americans, released a similar statement.
What Does It Mean?
Essentially, by mandating that all Americans have coverage while guaranteeing that all Americans will be eligible for coverage, the private insurance companies would be able to spread the risk across a larger base of customers. Alissa Fox, vice-president of the Blue Cross and Blue Shield Association, said “Insurance works best when everyone is in the pool. You need healthy people in the insurance pool to help pay for the sicker individuals who are much more motivated to buy coverage.” This system would most certainly guarantee an increase in revenue for the private insurance industry, but that might not necessarily translate into higher profits. The insurance industry contends that any mandate for guaranteed issuance would have to be combined with a mandate for coverage. Ms. Fox told reporters that an individual mandate was an indispensable corollary of any approach forbidding insurers to reject applicants because of health status.
Private insurers fear the ramifications of guaranteeing coverage without mandating coverage for everyone. Donald Hamm, president of Assurant Health, said “If they know they can obtain coverage at any time, many will wait until they get sick to apply for it. That increases the price for everyone.” The insurers claim that in states that require guaranteed coverage, they have already seen these problems.
The Politics of Universal Coverage
Mr. Obama supported a universal coverage guarantee during his run for the presidency this year, but he stopped short of calling for a mandate to require every American to have health insurance. Many on Capitol Hill also question the feasibility of requiring coverage due to the high cost and the difficulty of enforcement.
Senator Charles Grassley, a Republican from Iowa, said that mandated coverage would likely inflate the federal budget deficit. He said, “Increasing the record-breaking deficit is not a legitimate option. Ignoring the burden of inefficient spending that health care places on our economy is also not an option.” Other members of Congress tend to agree. Grassley participated in a closed-door meeting on Capitol Hill with other Senators concerned over the direction of the nation’s health insurance industry, including Democratic Senators Max Baucus and Edward Kennedy as well as Republican Senator Orrin Hatch among others.
Alternatives to Federally Mandated Universal Coverage
The mandated universal coverage plan has found support on Capitol Hill with Democratic Senators and in the president-elect but not everyone in Washington is behind it. While just about everyone agrees that universal coverage should be the ultimate goal for our health insurance industry, not everyone agrees on how to get there. The Republican candidate for the presidency this year, John McCain, ran on a healthcare platform that opposed universal healthcare mandated by the federal government. McCain, and other conservatives in the Republican Party, believe that any federal health insurance program would be an overexpansion of government involvement in private industry. McCain proposed a consumer-driven model for the health insurance industry, spurred by tax credits from the federal government to encourage coverage.
Many insurance industry analysts tend to agree. They believe that government-based health insurance is generally much less efficient than private-based insurance. Matthew Coffina, an analyst with Morningstar, said “Government plans tend to be much less profitable than commercial insurance. To the extent that they’re insuring more people, it’s good. To the extent that they are insuring people through government options instead of through commercial options would tend to depress margins.”
Change Is Coming
Regardless of what happens on Capitol Hill in the next four years, we will see some sort of reform in the healthcare industry soon. Our nation cannot afford to continue on with our current arrangement. Each year healthcare costs become a larger and larger portion of our spending. Without some change in the current system, we will eventually be spending more money on healthcare than anything else. Our nation has to commit to improving our overall health along with reforming our healthcare system. This change will affect us all, so it is certainly any issue that deserves our attention.
Source
http://www.nytimes.com/2008/11/20/us/20health.html?ref=us
http://www.bloomberg.com/apps/news?pid=20601202&sid=axooOa9vVGnc&refer=healthcare
http://www.google.com/hostednews/ap/article/ALeqM5jplyo5XCZt-sbgL21ggOoqg5nC3QD94I8HP80
Tuesday, December 16, 2008
Money Saving Tax Tips
Tax Law Changes for 2008
Each year the United States tax code changes. Sometimes that change is big, and sometimes it’s not so big. Knowing the meaning of these changes can save you money come April 15th.
In 2008 there are several tax code changes that are worth mentioning. The first change of note is that the tax brackets, personal exemptions, and standard deductions have all been adjusted this year for inflation. If you add all these things up, it simply means that if you made the same amount of money this year as you did last year, you will have a smaller tax bill. In addition to this adjustment for inflation there are several new deductions that could put a hefty sum of tax money back in your wallet.
First-Time Home Buyer’s Credit
If you are a first time home buyer and you purchased your primary residence after April 8, 2008, you may qualify for a tax credit that could add up to 10% of up to $75,000 of the purchase price. This tax credit is, however, more like an interest-free loan than a true credit. The IRS requires that the money must be re-paid in full within fifteen years. The IRS will begin collection on the credit two years after the credit is claimed and if you sell the residence before the credit is repaid, the balance is due the following year. Also, if your modified adjusted gross income exceeds $150,000 for joint-filers or $75,000 for single-filers, you do not qualify for this credit. If you buy the home from a close relative or if you have owned a home during any of the three years prior to the purchase of the home, you also do not qualify for the credit.
Additional Standard Deductions for Property Taxes Paid
This year, tax-payers who file standard deductions rather than itemized deductions will be allowed to take up to $1000 for joint-filers and up to $500 for single-filers for real estate taxes paid.
Increased Expense Deductions for Businesses
A new law has increased the amount of equipment expense allowed to be deducted for 2008. Businesses will be allowed to expense $250,000 this year which is a $125,000 increase over 2007.
Reductions in Capital Gains and Dividend Tax Rates
For 2008, the maximum tax rate for long-term capital gains from the sale of assets held longer than one year by a person in the 10% or 15% tax bracket has been reduced from 5% to 0%. This reduction will be in force until 2010. The Dividends Tax has seen a similar reduction for 2008.
State and Local Sales Tax Deductions
Back for 2008 is the option to deduct state and local sales tax payments as opposed to income tax payments.
Tuition Deductions
The deduction of up to $4000 for college tuition has returned for 2008.
Frequently Overlooked Tax Deductions, Subtractions, and Credits
Out-of-pocket Charitable Contributions
Everyone knows that large charitable donations are tax deductible, but one of the often overlooked tax deductions is smaller, out-of-pocket charitable deductions. These expenses can be anything from stamps to food to the miles you drive as long as they involve charitable work. For mileage, the IRS allows you to deduct 14 cents per mile.
Travel Expenses for Military Reservists
If you travel more than 100 miles overnight from your home for your National Guard or Armed Forces Reserves duties you may deduct the cost of your hotel bill, half of the cost of your food bills, and any expenses incurred for tolls or parking. In addition, you are also allowed up to 50.5 cents per mile for the first half of the year and 58.5 cents per mile for the second half of the year.
Reinvested Dividends
If you have dividends from mutual funds that you reinvest into the fund, you can add these to your tax basis, which will in turn reduce your taxable capital gain when you redeem your shares.
State Taxes Paid in the Spring
Remember that if you owed money when you filed your 2007 state tax return you can include that amount with your state-tax deductions on your 2008 return.
It’s easy to miss a deduction when your filing your tax return, and every time you do you turn over more money to the IRS than you should. No one wants to overpay their taxes, so make sure you pay extra attention this year when filling out your tax returns.
Source
http://www.kiplinger.com/features/archives/2007//01/deductions.html
http://www.kiplinger.com/features/archives/2006/09/taxes.html
http://www.irs.gov/newsroom/article/0,,id=186831,00.html
http://www.irs.gov/publications/p529/ar02.html
http://turbotax.intuit.com/support/kb/tax-content/tax-tips/6395.html
Each year the United States tax code changes. Sometimes that change is big, and sometimes it’s not so big. Knowing the meaning of these changes can save you money come April 15th.
In 2008 there are several tax code changes that are worth mentioning. The first change of note is that the tax brackets, personal exemptions, and standard deductions have all been adjusted this year for inflation. If you add all these things up, it simply means that if you made the same amount of money this year as you did last year, you will have a smaller tax bill. In addition to this adjustment for inflation there are several new deductions that could put a hefty sum of tax money back in your wallet.
First-Time Home Buyer’s Credit
If you are a first time home buyer and you purchased your primary residence after April 8, 2008, you may qualify for a tax credit that could add up to 10% of up to $75,000 of the purchase price. This tax credit is, however, more like an interest-free loan than a true credit. The IRS requires that the money must be re-paid in full within fifteen years. The IRS will begin collection on the credit two years after the credit is claimed and if you sell the residence before the credit is repaid, the balance is due the following year. Also, if your modified adjusted gross income exceeds $150,000 for joint-filers or $75,000 for single-filers, you do not qualify for this credit. If you buy the home from a close relative or if you have owned a home during any of the three years prior to the purchase of the home, you also do not qualify for the credit.
Additional Standard Deductions for Property Taxes Paid
This year, tax-payers who file standard deductions rather than itemized deductions will be allowed to take up to $1000 for joint-filers and up to $500 for single-filers for real estate taxes paid.
Increased Expense Deductions for Businesses
A new law has increased the amount of equipment expense allowed to be deducted for 2008. Businesses will be allowed to expense $250,000 this year which is a $125,000 increase over 2007.
Reductions in Capital Gains and Dividend Tax Rates
For 2008, the maximum tax rate for long-term capital gains from the sale of assets held longer than one year by a person in the 10% or 15% tax bracket has been reduced from 5% to 0%. This reduction will be in force until 2010. The Dividends Tax has seen a similar reduction for 2008.
State and Local Sales Tax Deductions
Back for 2008 is the option to deduct state and local sales tax payments as opposed to income tax payments.
Tuition Deductions
The deduction of up to $4000 for college tuition has returned for 2008.
Frequently Overlooked Tax Deductions, Subtractions, and Credits
Out-of-pocket Charitable Contributions
Everyone knows that large charitable donations are tax deductible, but one of the often overlooked tax deductions is smaller, out-of-pocket charitable deductions. These expenses can be anything from stamps to food to the miles you drive as long as they involve charitable work. For mileage, the IRS allows you to deduct 14 cents per mile.
Travel Expenses for Military Reservists
If you travel more than 100 miles overnight from your home for your National Guard or Armed Forces Reserves duties you may deduct the cost of your hotel bill, half of the cost of your food bills, and any expenses incurred for tolls or parking. In addition, you are also allowed up to 50.5 cents per mile for the first half of the year and 58.5 cents per mile for the second half of the year.
Reinvested Dividends
If you have dividends from mutual funds that you reinvest into the fund, you can add these to your tax basis, which will in turn reduce your taxable capital gain when you redeem your shares.
State Taxes Paid in the Spring
Remember that if you owed money when you filed your 2007 state tax return you can include that amount with your state-tax deductions on your 2008 return.
It’s easy to miss a deduction when your filing your tax return, and every time you do you turn over more money to the IRS than you should. No one wants to overpay their taxes, so make sure you pay extra attention this year when filling out your tax returns.
Source
http://www.kiplinger.com/features/archives/2007//01/deductions.html
http://www.kiplinger.com/features/archives/2006/09/taxes.html
http://www.irs.gov/newsroom/article/0,,id=186831,00.html
http://www.irs.gov/publications/p529/ar02.html
http://turbotax.intuit.com/support/kb/tax-content/tax-tips/6395.html
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