Travel & Entertainment

What are the tax court guidelines for determining if a convention trip is business or personal ?

Asked Tuesday, January 16, 2001 by an anonymous user

CPA Answer:

Generally, the tax court guidelines for determining if a trip is business or personal is (a) The primary purpose of the trip is business related, (b) the amount of time spent on personal activity compared with the amount of time spent on the business activity, (c) the location of the convention.
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IRAs - Traditional

IRA - Early distribution for medical expenses

Asked Tuesday, January 16, 2001 by an anonymous user

CPA Answer:

In the current year, you can receive an early distribution from your IRA to pay for your wife's medical expenses and will not be subject to a 10 % penalty on the amount that exceeds 10% / 7.5% of your Adjusted Gross Income.
The money can be used to hire a nurse, pay for prescription drugs and other items such as hearing aids, dentures and eyeglasses.
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College Planning & Financial Aid

When must contributions to an Educational IRA be completed by ?

Asked Tuesday, January 16, 2001 by an anonymous user

CPA Answer:

Contributions to an Educational IRA must be completed by the due date of the return 4/15/XX , NOT including extensions.
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Investments & Financial Planning

Educational IRA - Contribution Due Date

Asked Tuesday, January 16, 2001 by an anonymous user

CPA Answer:

Contributions to an Educational IRA must be completed by the due date of the return 4/15/XX , NOT including extensions.
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Educational IRA

Up to what date can I make a Educational IRA contribution?

Asked Tuesday, January 16, 2001 by an anonymous user

CPA Answer:

Contributions to an Educational IRA must be completed by the due date of your individual tax return, (generally 4/15/XX) NOT including extensions.
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Bookkeeping & Write-up

What is kiting a check ?

Asked Friday, January 12, 2001 by an anonymous user

CPA Answer:

Kiting refers to the practice of depositing and drawing checks at 2 or more banks and taking advantage of the time it takes for the 2nd bank to collect funds from the 1st bank. It also is a bookkeeping trick to illegally increase the face value of a check by changing the numbers on the check.
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Investments & Financial Planning

In the stock market calendar, what is the January barometer and January effect ?

Asked Friday, January 12, 2001 by an anonymous user

CPA Answer:

The January barometer is a statistic from "The Stock Traders Almanac" reflecting, with 85-90% accuracy, that the overall stock market rises in a year when the Standard and Poors is up in the month of January and drops when the index for that month is down.
The January effect refers to the historical pattern that stock prices rise in the first few days of January.
Studies have suggested this holds only for small capitalization stocks. In recent years, there has been less evidence of a January effect.
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Investments & Financial Planning

Does Italy have a stock exchange ?

Asked Friday, January 12, 2001 by an anonymous user

CPA Answer:

Yes. Italian Stock Exchange is based in Milan. It came into effect after the unification of Italy's 10 national exchanges in 1991. All listed securities are traded electronically. The main indexes are the MIB and the MIBTEL, based on the prices of all listed shares, and the MIB Thirty, based on a sample of the thirty most liquid and highly capitalized shares.
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Investments & Financial Planning

What is an Investment letter ?

Asked Friday, January 12, 2001 by an anonymous user

CPA Answer:

An Investment letter is a letter of intent between the issuer of new securities and the buyer, in the private placement of these new securities. The letter of intent establishes that the securities are being bought for a minimum time period and are treated as an investment, not for resale. If no such letter exists, the securities must be registered with Securities and Exchange Commission.
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Investments & Financial Planning

What is the International Monetary Fund ?

Asked Friday, January 12, 2001 by an anonymous user

CPA Answer:

The International Monetary Fund also known as the IMF is an organization founded to oversee exchange arrangements of member countries and to lend foreign currency reserves to members with short term balance of payment problems.
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