Facing the Truth
As a physician and an entrepreneur, I am an avid reader of yourmagazine. Your articles are at once educational and entertaining.Nichole L. Torres' well-written article "FaceValue" should not be construed as educational, however.Tickle's views on the meanings of facial features of famouspeople are not backed by strong scientific evidence. To basebusiness decisions on these features is the equivalent ofconsulting one's horoscope and, as such, should be intended forentertainment purposes only.
Erik Hoy
Plastic Surgery Resident
Pomona, New Jersey
Food for Thought
The article "InYour Dreams" by Geoff Williams was very interesting andmakes an important point. It is essential to realize that yourintuition is available and always sending information. However, youmust also be in a receptive state of mind in order to act onmillion-dollar ideas when they surface. Many people find that onepassing thought, properly captured, has changed their entirelife's direction.
Evelyn Grazini
Author of Directed Dreaming: Success from theSubconscious
Seattle
For Your Consideration
I found your article entitled "Getthe Word Out," by Catherine Seda, useful, but it left outone major press-release distribution player: Marketwire.
I also evaluated PR Newswire and Business Wire and selectedMarketwire after a comprehensive review. I urge you to take a lookat the comparison of the wires.
I save, on average, 40 percent to 50 percent on each release,and I found Marketwire's reach and effectiveness to be as goodas--and in most cases, much better than--the ones mentioned in thearticle. What has continued to amaze me, and is a realdifferentiator, is their proactive and positive customerservice.
Steve Kayser
Director of PR
Cincom
Watch Your Claims
I read your June column on the new IRS home-office saleguidelines ("PersonalFinance") and believe that the information you imparted isincorrect (or, at least, incomplete.) On December 24, 2002, the IRSissued guidelines making it clear that even those who had claimed ahome office in prior years would qualify for the $250,000/$500,000capital gain exemption when they sold their homes. However, homeoffices that were separate structures from the main home would notqualify. For the majority of home offices, however, the guidelinesspecified that the only effect of selling a home in which a homeoffice had previously been claimed was that the depreciationclaimed (or allowed) would need to be recaptured.
While home prices have increased so much in many parts of thecountry that the 1031 home office exchange you mentioned might benecessary/desirable (because the $250,000/$500,000 exemptionwon't be sufficient), the majority of homeowners who haveclaimed a home office and are now selling their homes will be ableto manage without the complexity of a 1031 exchange and will beable to ignore (not just defer) the gain on their homes (with theexception of paying tax on the depreciation claimed).
As a tax preparer who specializes in small business, I am oftenasked whether it's worth claiming the home office despiteproblems when the home gets sold. I always assure these businessowners that it is. However, your article might make these taxpayersreluctant to claim a home office.
The February 2005 guideline change will be helpful to somebusiness owners, but it is neither simpler nor better than theguidelines issued in December 2002, which are applicable to manymore taxpayers.
Jan Zobel
Author of Minding Her Own Business: The Self-EmployedWoman's
Essential Guide to Taxes and Financial Records
Scott Bernard Nelson responds: Jan correctly points out thatrecapturing home-office depreciation won't be significant indollar terms for many. But it could be for some, even for thosewith offices inside the home (not external structures). TheFebruary 2005 IRS guidance gives people a new option. The recaptureof home office depreciation can now be deferred until later, ifnecessary, via a 1031 exchange. It won't be for everyone, butthose with a home office should know about thealternatives.
Correction
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