The very identity of the tomato is and has for a long time been a point of contention. On the one hand, botanical purists point out that the tomato should be considered a Fruit, given that it is the fruit of a vine. On the other hand, as part of our diets, the tomato "acts" like a vegetable. Over a century ago, no less than the U.S. Supreme Court took up the subject, ruling in a short opinion that the tomato should be treated as a vegetable. The issue arose over a protest mounted in court by importers of tomatoes from the West Indies against a tariff that had been imposed on the tomatoes. The tariff could be imposed on vegetables but not … [Read more...]

If, like so many, you are prone to disorder in the keeping of important documents, assuming that you keep them M all, you may be well past clue for a makeover of your estate plan and your end-of-Iife instructions. It is not just a matter of maintaining tidiness for its own sake: a lot of money and time could be saved by making your estate plan organized and accessible and then keeping it that way. Yes. it is easier said than done, but consider a quick fact if you double the importance of this undertaking: Ac-cording to some sources that study such things, state treasurers now hold over$32 billion (not million)dollars in unclaimed bank … [Read more...]

For you to claim a federal income tax deduction for a charitable donation valued at $250 or more, you must obtain from the recipient of the donation a "contemporaneous written acknowledgment" letter. Failure to obtain such a letter can result in a disallowance of the deduction by the IRS. The acknowledgment letter, which may be in the form of a thank you letter to you as the donor, should include the following information: The name and address of the recipient of the donation; The amount of a cash gift or, if not in cash, a description of the donation sufficient to identify the nature of the gift; and, if applicable, A statement … [Read more...]

Nate Thoma is not a lawyer, but he is a soft-spoken, yet confident, small investor in Washington Mutual, the big bank that was seized by the federal government in 2008 and ended up in bankruptcy. As for so many other investors, Nate's stake in the bank was wiped out. Nate became something of a folk hero during that tumultuous period when big banking institutions were failing and the little people always seemed to get the short end of the stick as the messes were being cleaned up. Nate's big moment came when, after he had spent untold hours analyzing the Washington Mutual case, the federal bankruptcy judge let him have his say—and at some … [Read more...]

A major health services company with thousands of employees overhauled its pension plan some years ago. As it explained to the employees at the time, their then-existing benefits would all be converted into a hypothetical lump sum, which would constitute the opening account balance for the new plan. That amount would then grow by a percentage of the employee's pay each year. It all sounded as though there was nothing to which the employees could object. But what was not explained to the employees, and what eventually led a class of employees to sue under the federal Employee Retirement Income Security Act (ERISA), was that the beginning … [Read more...]

The Microloan Program gives small, short-term loans to small business concerns and certain types of not-for-profit child-care centers. The SBA makes funds available to specially designated intermediary lenders. These are nonprofit community-based organizations with experience in lending as well as in management and technical assistance. These intermediaries make the loans to eligible borrowers. The maximum loan amount is $50,000, but the average microloan is about $13,000. Microloans may be used for working capital, the purchase of inventory or supplies, and the purchase of furniture or fixtures, or the purchase of machinery or equipment. … [Read more...]

In theory, we are all in favor of saving time, labor, and space, not to mention avoiding the stress and anxiety that can come from leading complicated and disorganized lives. In the realm of personal finance, these are all good reasons to resolve to become more simplified and organized, but saying and doing are two different things. It may help move the process along to break the job up into some very specific things that you can do in addition to making an overall change in attitude toward your finances. Minutes spent doing this ahead of time could save hours and many dollars later. Direct Deposit Who knows, you may be one of those … [Read more...]

For some people, life insurance may not spring to mind immediately as an effective estate planning tool. A life insurance policy remaining in the estate of the insured is subject to federal estate taxes. However, when carefully crafted and put in place with the guidance of an appropriate professional, there is a way both to obtain the familiar benefits of a life insurance policy— providing a measure of financial security for the beneficiaries—and to remove the policy's proceeds from exposure to the estate tax. The vehicle is called an Irrevocable Life Insurance Trust (ILIT). Here is how an ILIT works. At the core of the trust is the … [Read more...]

It is no secret that businesses generally. And small businesses in particular have been through rough- times, and those are not over yet. Still, there is some assistance to be had as a small business owner if you know where to look. One prominent example is the Small Business Administration (SBA) and its Guaranteed Loan Programs. Contrary to a common misconception the SBA does not make direct loans to small businesses. Instead, the SBA establishes the guidelines for loans which arc then made by its "partners," meaning lenders, community development organizations, and micro lending institutions. To eliminate some of the risk to the lending … [Read more...]