Monthly Archives: June 2014

Rob Taylor June, 17, 2014

By | Uncategorized | No Comments

Rob Taylor provided the membership with financial results from last month’s Street Fair. Our total profit came to $2,162.82, with $873 of that sum coming from the raffle. Kate reminded us to bring food items to our meetings for kids at New Haven who are struggling. She also reminded us to indicate our choices (1 through 4) for next year’s club assignments. Get those choices to her muy pronto if you have not done so already. Dave Jones provided us with an update regarding next Monday’s Golf Tournament to be held at Arrowood again this year. Dave believes we now have about ninety golfers signed up to play, with halfof those credited to our club. Oceanside and San Luis Rey Rotary Clubs are significant laggards in lining up golfers.

Demotion has fallen through the cracks—a club first. Granted, our president has agreed to serve a second, consecutive term, but it appears a second installation will be lost in some sort of celebration scheduled for, Saturday, July 12. Is anyone in charge?Lee Russell advised the membership that our club achieved EREY status for the year. That is, every member of our club contributed to The Rotary Foundation during the year just winding down. While final data isn’t yet in for our district, Lee believes our club will show up among the very best.Happy dollars:Having returned just last night from Scotland where he had treated the family to a ten­day driving vacation, Rob Taylor was sufficiently awake to commit $30 to the kitty. Sounds like the family had a great time.Pete Myers gave $20 for a vacation to Yosemite where he, Jane , and the family hiked, biked, and went rafting.Dean Cheatham gave $100 for a golf sign and another $25 for the fact that he and Valerie had just “closed” on a new home in Knoxville, TN. Looks like they’re really serious about leaving us­­darn it!Julie Bemis contributed $10 for missing last weeks meeting while she was in Illinois visiting family.We hope she made up that missed meeting following her return.

Program:Dean Cheatham introduced today’s speaker and one of his clients, Jack Innis, an award­winningjournalist who is familiar with some unusual and quirky stories about the San Diego area. A graduate of Cal State San Marcos, he lives in Bay Park and works as a freelance writer and editor. Jack is also the author of “Torrey Pines Hermit” and “San Diego Legends.”Jack shared two stories with us. The first was about a cave and series of tunnels that begins on the rocks below downtown La Jolla and makes its way up to nearly street level. (Your scribe is somewhat familiar with this “passageway.”) Portions of the tunnel have concrete pathways which suggests some 19th or 20th century involvement. Might this latter information suggest some use for smuggling?But smuggling when and of what?Jack’s second story dealt with an eccentric fellow who created a two­room cave in the big cliff at the north edge of Torrey Pines State Park and made it his home for twenty years. Kicked out of his Salt Lake City home in the mid­70s by a wife who tired of his endless and reclusive reading and study of world religions and philosophies, he made his way down the coast by bus to the park area wherehe “felt an immediate inner response” to the big cliff at the north edge of the reserve. Using only a Bowie knife and a screwdriver, he tunneled his way into the sandstone. Later he would acquire a hatchet and pickaxe to aid in the work, eventually creating two rooms. His “furniture” was carved from the sandstone. He painted and decorated his abode with paintings drawn from every religion. He went out early in the day, catching a bus to Pacific Beach to spend time at a gym and get groceries. He wrote in the evenings, filling many notebooks.

Rangers discovered him in 1987, but, since no one complained, they did nothing, Ultimately, however, he came to have many visitors. He built bridges and stairways and dammed a creek. The rangers finally had had enough and, as Jack told us, finally filled the cave with a truckload of concrete in 1991.Nick made many appeals, legal and otherwise, but those came to naught. He continued to dig in the area, creating more problems for the authorities. Nick finally died at a La Jolla hospital in December, 1994, at the age of 74.Raffle winner: Jane Myers was the winner of $35.00.Attendance today: Better than usual: 17.Meeting adjourned: Mychal dismissed us at 1:30 p.m.Submitted by: Lee Russell

Cheat them Tax talk: Dean – June 3, 2014

By | Uncategorized | No Comments

Dean shared with us all some of the trix and trades of the tax preparers business. Always seek to have your taxes prepared by an accredited tax person!

  • Credit Laws – Many variables
  • Filing status – A person’s filing status determines which tax rates and which standard deduction amounts apply to a specific tax return.
  • Dependents – With all these tax benefits tied to claiming a dependent, it is important to know whether or not your dependent can be claimed on your tax return.
  • Tax brackets:
Tax BracketSingleMarried Filing JointlyHead of Household
10% Bracket$0 – $9,075$0 – $18,150$0 – $12,950
15% Bracket$9,076 – $36,900$18,151 – $73,800$12,951 – $49,400
25% Bracket$36,901 – $89,350$73,801 – $148,850$49,401 – $127,550
28% Bracket$89,351 – $186,350$148,851 – $226,850$127,551 – $206,600
33% Bracket$186,2351 – $405,100$226,851 – $405,100$206,601 – $405,100
35% Bracket$405,101 – $406,750$405,101 – $457,600$405,101 – $432,200
39.6% Bracket$406,751+$457,601+$432,201
  • The earned income credit is a refundable tax credit designed for lower income working families and individuals. The amount of the credit varies depending on your level of income and how many dependents you support. The tax credit can even generate a tax refund larger than the amount of tax paid in through withholding. For the years 2009 through 2017, the Earned Income Credit is temporarily increased for working families with three or more dependents. Previously the earned income credit maxed out at two dependents. The earned income credit will revert back to maxing out with two dependents starting in the year 2018.
  • A capital gains tax (CGT) is a tax on capital gains, the profit realized on the sale of a non-inventory asset that was purchased at a cost amount that was lower than the amount realized on the sale. The most common capital gains are realized from the sale of stocks, bonds, precious metals and property. Not all countries implement a capital gains tax and most have different rates of taxation for individuals and corporations.

                                                                                                 

                                                                                                                                           Roth IRA                                              Traditional IRA

2014 Contribution Limits$5,500; $6,500, if age 50 or older$5,500; $6,500, if age 50 or older
2014 Income Limits

Single tax filers with modified AGIs of less than $129,000 (phase-out begins at $114,000); married couples filing jointly with modified AGIs of less than $191,000 (phase-out begins at $181,000)

Anyone with earned income can contribute but tax deductibility is based on income limits and participation in employer plan

Tax TreatmentNo tax break for contributions; tax-free earnings and withdrawals in retirementTax deduction in contribution year; ordinary income taxes owed on withdrawals
Withdrawal RulesContributions can be withdrawn at any time, tax-free and penalty free. After five years and age 59 ½, all withdrawals are tax-free, too. No withdrawals required during account holder’s lifetime; beneficiaries can stretch distributions over many years

Withdrawals are tax-free and penalty free beginning at age 59 ½. Distributions must begin at age 70 1/2 ; beneficiaries pay taxes on inherited IRAs.

Extra Benefits

After five years, up to $10,000 of earnings can be withdrawn penalty-free to cover first-time homebuyer expenses.

Contributions lower taxpayer’s AGI, potentially qualifying them for other tax incentives; up to $10,000 penalty-free withdrawals to cover first-time homebuyer expenses, but taxes due on distributions.