ACCOUNTANTS IN THE MOVIES

In Hollywood, accounting can seem like a pretty glamorous profession, or not.

Charles Martin Smith (far right) played accountant Oscar Wallace in the 1987 movie version of "The Untouchables," a popular TV series that ran from 1959-1963. Wallace joins a team organized by Treasury agent Elliot Ness, played by Kevin Costner, to break up Al Capone's mob in Prohibition-era Chicago. They finally put Capone behind bars for tax evasion. Capone was played by Robert De Niro. Other members of Ness's Untouchables included Sean Connery and Andy Garcia. Wallace was based on a real-life accountant named Frank J. Wilson who joined the Treasury Department's Intelligence Unit in 1920 and later helped nab Lindbergh baby kidnapper Bruno Hauptmann by insisting that the serial numbers on the ransom money be properly recorded. Wilson later became chief of the Secret Service.

13 THINGS YOUR PODIATRIST WON'T TELL YOU

As you may know from reading my blogs, I am a avid reader of Reader's Digest.

In their November magazine, Michelle Crouch wrote about 13 Things Your Podiatrist Won't Tell You -- "what does that have to do with me?" is what you are asking, 2 of the 13 involve salons.

#3: Infections from nail salons keep us in business. If you want a pedicure, book the first appointment of the day, when the equipment is cleaner. Those footbaths can be especially germy. Even if the technicians spray the basin between customers, many of the tubs have drains and filters that don't get cleaned.

#10: I don't have a problem with people getting pedicures, but please don't shave right before you go. You might be embarrassed by your stubble, but it will be worse when bacteria and fungus enter the microscopic nicks on your ankle and give you an infection.

Remember that your clients read these articles too.

Raffle Winner

Q. We were at a local fundraising event and won a raffle. The prize was a trip to Vail, CO. including airfare and lodging for seven nights. The value is estimated at $12,000 to $18,000. Is the prize taxable?

A. You win... and of course the IRS wins. This is taxable and you most likely be receiving a 1099 for this. If the trip is valued at $12,000 at a 40% tax rate, you will be paying about $4,800 in income taxes on your 2011 tax return for this.

Enjoy the trip.

PROTESTS ON WALL STREET

Maybe this is too political but.... this past summer I read Atlas Shrugged by Ayn Rand. The book explores a dystopian US where leading innovators refuse to to be exploited by society. The protagonist sees society collapse around her as the government asserts control over all industry while the most productive citizens progressively disappear.

As I watch the protests on Wall Street and the ones spreading across the country, I thought of this book and the following statements. If anybody that reads this understands what the protesters are trying to get across would you please email me so that maybe I can understand.

Here are the concepts that I pulled out of my quotes bag.

1. You cannot legislate the poor into prosperity by legislating the wealthy out of prosperity.

2. What one person receives without working for, another person must work for without receiving.

3. The government cannot give to anybody anything that the government does not first take from somebody else.

4. You cannot multiply wealth by dividing it.

5. When half of the people get the idea that they do not have to work because the other half is going to take care of them, and when the other half gets the idea that it does no good to work because somebody else is going to get what they work for, that is the beginning of the end of any nation.

TEN TAX TIPS FOR INDIVIDUALS SELLING THEIR HOME

The Internal Revenue Service has some important information to share with individuals who have sold or are about to sell their home. If you have a gain from the sale of your main home, you may qualify to exclude all or part of that gain from your income. Here are ten tips from the IRS to keep in mind when selling your home.

1. In general, you are eligible to exclude the gain from income if you have owned and used your home as your main home for two years out of the five years prior to the date of its sale.
2. If you have a gain from the sale of your main home, you may be able to exclude up to $250,000 of the gain from your income ($500,000 on a joint return in most cases).
3. You are not eligible for the exclusion if you excluded the gain from the sale of another home during the two-year period prior to the sale of your home.
4. If you can exclude all of the gain, you do not need to report the sale on your tax return.
5. If you have a gain that cannot be excluded, it is taxable. You must report it on Form 1040, Schedule D, Capital Gains and Losses.
6. You cannot deduct a loss from the sale of your main home.
7. Worksheets are included in Publication 523, Selling Your Home, to help you figure the adjusted basis of the home you sold, the gain (or loss) on the sale, and the gain that you can exclude.
8. If you have more than one home, you can exclude a gain only from the sale of your main home. You must pay tax on the gain from selling any other home. If you have two homes and live in both of them, your main home is ordinarily the one you live in most of the time.
9. If you received the first-time homebuyer credit and within 36 months of the date of purchase, the property is no longer used as your principal residence, you are required to repay the credit. Repayment of the full credit is due with the income tax return for the year the home ceased to be your principal residence, using Form 5405, First-Time Homebuyer Credit and Repayment of the Credit. The full amount of the credit is reflected as additional tax on that year’s tax return.
10. When you move, be sure to update your address with the IRS and the U.S. Postal Service to ensure you receive refunds or correspondence from the IRS. Use Form 8822, Change of Address, to notify the IRS of your address change.

ACCOUNTANTS IN THE MOVIES

In Hollywood, accounting can seem like a pretty glamorous profession, or not.

Will Ferrell plays lonely IRS agent Harold Crick in the 2006 comedy-drama "Stranger Than Fiction." Harold has been assigned to audit Maggie Gyllenhaal, and falls in love with her. However, he keeps hearing a strange British-sounding voice in his head, and he discovers it's author Emma Thompson, whom he tracks down through her tax records. Turns out she has been writing about his life and trying to decide how he will die in her next book.

THE SALON INDUSTRY LOSES A FRIEND

Ken Cassidy passes away at age 69.

I found out a few hours ago that my good friend Ken Cassidy passed away. Ken had been struggling with some lung issues for the few years. I saw him last in June 18 at the Energizing Summit. He told me he had to use a respirator from time to time but he never let on that it was serious. I will get into his importance to the industry in a bit but before I do that I have to tell you a little bit more about the man.

I will never forget the first time I met Ken. In November 2001, right after the 9/11 tragedy I was speaking at the first Suzie Fields, Your Beauty Network Symposium in San Diego. My program ended right before lunch. They served a box lunch for everyone. By the time I got off the stage and finished answering questions the lunch was over. As I walked over to a booth that they had set up for me over wakes a guy I didn't know and said, "I figured you were going to miss lunch so I saved half my lunch for you."

That was the type of guy Ken was. Over the years he was always trying to advance the industry. He was the guru on booth rental and if clients were trying to get their business cleaned up I would send them to Ken. He had all the contracts and agreements to help.

Several times Ken and I would be speaking at the same conference so I got to know him quite well. He was always introduced me to people in the industry. He had quite a network.

After the Energizing Summit in Los Angeles, we had dinner together. We talked about his son and his investment property but mostly we talked about the salon business. He had such passion about the industry and so much passion about life and helping others. I will miss him, but I can tell you this, I will never forget that guy with the long hair making sure that I had lunch and the impression it had on me. He made a difference because over the last 10 years I have looked for opportunities to help just like Ken.