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On Tuesday, attorneys representing city unions, retirees and creditors argued in bankruptcy court that Detroit’s bankruptcy violated Michigan’s constitution.  They argued that ceding control of the city’s finance to the federal government, through bankruptcy, was unconstitutional.  On Wednesday, they argued the legality surrounding the appointment of the emergency manager for Detroit - - the state Legislature and the Governor to enacted a law permitting the appointment even after a failed … [Read more...]

The IRS may be closed due to the government shutdown but it will reopen and resume sending taxpayers those dreaded notices that it is questioning something on a tax return.  Before you panic, take time to read the notice thoroughly. It may be something very simple that can be taken care of quickly and without a lot of stress.  If you do not understand the notice, call the IRS and ask as many questions as necessary so that you understand the notice.  If all else fails, schedule an appointment … [Read more...]

If you are looking for ways to decrease your 2013 tax obligation, you may want to take advantage of some tax breaks that are scheduled to end this year if Congress does not take action to extend them.  You could make some much-needed repairs or improvements to your home and, if they make your home more energy efficient, you could get a tax credit of up to $500.  Are you searching for a new vehicle?  Consider an electric vehicle to save energy and to get a tax credit. For six more tax credits … [Read more...]

The fight continues over Obamacare.  One of the many elements that the parties cannot agree upon is the excise tax on medical devices.  There is some confusion as to what a medical device is and who will be paying this tax.  For example, bandages and tongue depressors are considered medical devices and will be taxed if sold to a hospital or other medical provider.  However, the average consumer purchasing those items for personal use at a store would not pay the tax.  There are also exemptions … [Read more...]

In many areas, the value of your home determines the about of property tax that you will pay to your local taxing authority.  While you want your home to be worth as much as possible when you list it for sale, having a high value for tax purposes means you pay more each year in property taxes.  If you feel that your home is over-valued for tax purposes, you can appeal.  However, it may turn into a long process that will require, at the very least, a current appraisal.  You may even need the … [Read more...]

If you are searching for your first home, you have probably heard that you must have a 20% down payment if you want to buy a home.  In today’s economy, it is difficult for new buyers to come up with that much cash.  However, there are homebuyers that are getting loans with less than the traditional 20% down payment.  First time homebuyer’s programs, FHA loans and private mortgage insurance are a few ways that new homebuyers are getting around the traditional 20% down payment rule. For more … [Read more...]

How often do you hear that question?  Most financial planners and advisors charge a premium for their services.  However, gaining the advice of a professional financial planner can help you tackle tough financial questions you may be facing. Residents in select cities, including Chicago, may have the opportunity for a free consultation with a professional financial advisor.  The Financial Planning Days, a traveling program, will be coming to the Chicago area soon to offer free financial … [Read more...]

As most people think about ways they can make the most out of their retirement contributions before the end of the year, some are trying to figure out what to do with retirement withdrawals.  If you are over 70½, you are required to withdraw at least the minimum retirement distribution before the end of the year.  This leaves you trying to figure out what assets to tap for the distribution and how to reinvest the money that you may not need right now. For tips and suggestions read, “How to … [Read more...]

Even with the best credit score, your credit card interest rate will still be higher than the interest rate for your mortgage.  There are several reasons for this.  The main reason is that your mortgage is secured by collateral while your credit card balance is unsecured and at risk.  Credit card interest rates are also closely tied to the economy and your credit score.  However, if you shop around you can find credit cards with lower interest rates. For more information read, “Why Are Credit … [Read more...]

For taxpayers who have a healthcare FSA account, they know that they must spend those funds before the end of the tax year or lose them.  However, the tricky part is finding ways to spend the money that are allowable under the tax code.  For example, you cannot stock up on over-the-counter medications but you can purchase various types of home healthcare equipment.  If you suspect that your child may need orthodontia, this would be the time to brighten their smile using your tax-free FSA … [Read more...]