In most cases, the number system is base 2, meaning there are only two digits (0 and 1). However, other number systems, such as base 10 (used by humans) and base 16 (used by some computer hardware), are also used in specific cases. The number system is a fundamental concept in computer science, and understanding it is essential to working with computers.

The most basic element of the number system is the bit. A bit is a single digit in the number system, and it can have a value of either 0 or 1. The value of a bit is determined by its position in the number system; the first bit (the rightmost bit) has a value of 1, the second bit has a value of 2, the third bit has a value of 4, and so on. This system is known as positional notation, and it allows for numbers to be represented in a compact form.

In this article, we list the four types of number systems used in computers alongwith example:

Decimal Number System

The decimal number system is the most common number system in use today. It is a base 10 system, meaning it uses 10 digits (0-9). The decimal number system is used by humans because we have 10 fingers, making it easy for us to count and represent numbers using this system.

The decimal number system works by representing numbers in powers of 10. For example, the number 12 can be represented as 1×10^1 + 2×10^0, which can be simplified to 1 ten and 2 ones, or 12. The number 123 can be represented as 1×10^2 + 2×10^1 + 3×10^0, which can be simplified to 1 hundred, 2 tens, and 3 ones, or 123.

In the decimal number system, each digit has a value that is 10 times greater than the value of the previous digit. For example, in the number 12, the 1 has a value of 10 and the 2 has a value of 1. This system is used because it is easy for humans to understand and work with.

The decimal number system is used in many everyday applications, such as telling time, measuring weight or distance, and counting money. It is also the number system that is most commonly used by computers.

Binary Number System

The binary number system is a base 2 system that uses only two digits, 0 and 1. The binary number system is the most common number system used by computers because it is easy for them to store and process information using this system.

In the binary number system, each digit has a value that is 2 times greater than the value of the previous digit. For example, in the number 10, the 1 has a value of 2 and the 0 has a value of 1. This system is used because it is easy for computers to understand and work with.

Example

Write (18)₁₀ as a binary number.

Solution:

∴ (14)₁₀ = (10010)₂

The binary number system is used in many everyday applications, such as networking and data storage. It is also the number system that is most commonly used by computers.

Octal Number System

The octal number system is a base 8 system that uses only eight digits, 0-7. The octal number system is used in some computer applications because it is easy for computers to store and process information using this system.

In the octal number system, each digit has a value that is 8 times greater than the value of the previous digit. For example, in the number 10, the 1 has a value of 8 and the 0 has a value of 1. This system is used because it is easy for computers to understand and work with.

The octal number system is used in some computer applications, such as networking and data storage.

Hexadecimal Number System

The hexadecimal number system is a base 16 system that uses 16 digits, 0-9 and A-F. The hexadecimal number system is used in some computer applications because it is easy for computers to store and process information using this system.

In the hexadecimal number system, each digit has a value that is 16 times greater than the value of the previous digit. For example, in the number 10, the 1 has a value of 16 and the 0 has a value of 1. This system is used because it is easy for computers to understand and work with.

Number System Conversion

It is important to be able to convert between different number systems, as some applications may use one system while others use another. For example, a computer may store information in binary form but need to display it in decimal form. In this case, the computer would need to convert the binary number to a decimal number before displaying it.

You can refer to RapidTables number conversion tool to convert as well as learn more about it.

Conversion between number systems can be done manually or with the use of a calculator. To convert a number from one system to another, the number must first be broken down into its component parts.

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Think you need a lot of equipment to build strength? Well, you can do it on your own without moving a muscle. This article outlines how.

When you think of strength training, what image comes to mind? Probably someone is struggling and sweating with barbells and dumbbells, or straining against a shiny high tech machine. But there’s another way to build up your muscular strength and endurance. For most exercises, you don’t need any equipment. You can do them in your home. And you don’t have to move a muscle.

I call these exercises static exercises. You aren’t moving. Instead, you’re holding yourself in a position that forces your muscles to contract and strengthen. Even though you’re not going through a range of motion, load and stress are training on your muscles. You’ll feel it. Best of all, the static exercises in this article target all of your major muscle groups.

If you’re already on a fitness program, the exercises in this article are a great complement to your plan — especially on those days when you don’t have time for a full workout. If you’re trying to get back into shape after a long layoff, or plan on starting an exercise regimen, then static exercises can help you start building or rebuilding your strength before you move on to more advanced exercise routines.

You’ll notice that most of the exercises are the ones that you might have done in school or a gym. The positions will be familiar to you, so there won’t be much of a learning curve. And the exercises that are unfamiliar are easy to learn.

Before you begin

If you haven’t exercised for a while, or if this is the first time doing an exercise program, talk to your doctor before you start. And if you feel any sharp pain while doing these exercises, stop. Your body is telling you something is wrong, and you should listen before you hurt yourself.

As for the exercises themselves, hold the positions for as long as possible. How long will that be? Well, it depends on you and the exercise. It might be 10 seconds, or it might be two minutes. Also, when you are doing a static exercise routine, mix the workouts up. Do a couple of the upper body exercises, then one of the abdominal or leg exercises. Keep rotating through the exercises until you’ve done them all once.

Working the upper body

Everyone, male or female, wants a firm and toned upper body. The static exercises that I’m going to describe hit all the major areas of your upper body: arms, shoulders, upper back, and chest.

Pushup

Pushups are a staple of physical fitness programs. From school gym classes to the military, pushups are famous because they are easy to do and require only a stretch of floor or ground. Pushups also do a great job of working the upper body.

The static version of the pushup is easy to do. Get into pushup position and lower yourself down until your chest is a few inches off the ground. Make sure that your back is straight and that your chin is up, with you looking forward. Hold the position for as long as you can.

Pushups are probably the most versatile of all upper body exercises. And you can incorporate that versatility into your static exercise routine. How? By simply varying the pushup positions that you use. For example:

• Position your arms at twice your shoulder width apart.
• Extend your arms all the way out and hold that position
• Place your hands side-by-side so that they form a diamond and lower yourself two-thirds of the way down
• Raise one leg off the floor while in the down position

You’ll notice that each of these positions works different sets of muscles. And by tossing these variations into the mix, you’re ensuring that you’re not getting too bored with the exercises that you’re doing.

Pull up

Nothing beat pullups for building arm and upper back strength. Static exercises based on pull-ups are demanding, but they also bring some excellent results. The only drawback is that these exercises require special equipment — a pull-up bar.

But, that’s not a significant drawback. You can find a pull-up bar at most sporting goods stores. These are usually the kind that hangs in a doorway, so you should be careful where you use it. Also, you can use a sturdy tree branch to do this exercise.

This exercise is simple. Grab the chin up bar with your palms facing you and arms shoulder-width apart. Then, pull yourself up so that your nose is just over the bar. And, of course, hold yourself in that position for as long as possible. Another, more challenging, variation of this exercise is to lock yourself in position with your palms facing away from you. It not only works the arms but the upper back as well.

But what if you can’t pull yourself all the way up? Try hanging from a chin-up bar to build up your strength.

Hanging

Hanging from a chin-up bar may seem pointless. But if you do it, it works your arms, shoulders, and grip. The fact that it’s a simple exercise shouldn’t put you off. Hanging is simple, but it is challenging.

To do it, grab the bar and hang. Make sure that you aren’t extending your elbows. Instead, they should be slightly bent. It reduces the risk of injury to your elbows. If you’re using a chin-up bar that fits across a doorway, you’ll probably need to tuck your legs up underneath yourself, so your feet don’t touch the floor. Try not to swing while hanging.

There are some ways you can spice this exercise up. One way is not to use your thumbs when hanging on to the bar. It works your grip. Another way is to pull yourself half way up and hold yourself there for as long as possible.

If you want a real challenge, hang and stretch your legs out in front of you. Doing this works your abdominals, while also putting more load on your arms and shoulders. An even more challenging variation on this hang is to haul yourself up into the full pull-up position while extending your legs. In addition to working your arms, shoulders, and abs, you’ll feel this in your upper back.

Dips

Like pull-ups, dips are an fantastic upper body blaster. They work your shoulders, chest, and triceps. Static dips do the same thing, and they’re easy to do.

To perform static dips, you’ll need two kitchen or dining room chairs. Position the chairs slightly more than shoulder width apart, with the seats facing each other. Move into the gap between the chairs, and place your hands firmly on the seats. Then, lower yourself until your arms form right angles. You should immediately feel the load on your shoulders, triceps, and chest.

L-sit

If you’ve ever watched gymnastics, you’ve probably seen competitors on the rings or the pommel horse hold themselves in an “L” position. That takes a lot of strength, the kind you can build by doing what I call an L sit.

To do the L sit, take two chairs and place them slightly more than shoulder width apart, with the seats facing each other. Move into the gap between the chairs, and put your hands firmly on the seats. Lift your legs off the floor and try to hold them straight out in front of you. You’ll feel it in your shoulders and abs.

If you can’t do a full extension of your legs, try raising your knees up and let your lower legs dangle. When you get strong, try extending your legs. It will take a while to be able to do that, but you’ll notice your gains in strength as you keep doing the exercise.

Working the abs and core

Everyone wants a flat stomach. And core training, strengthening the work the area that supports your torso and spine, is all the rage. You don’t need to resort to fancy equipment or body-contorting exercises to build a strong core and abs.

Leg Raise

As an abdominal exercise, the leg raise has gone in and out of fashion and back many, many times. But one fact remains: it’s an excellent exercise for building hard stomach muscles.

To do the static leg raise, lie down on your back. With your feet together, lift your legs six inches or so off the ground. At the same time touch your chin to your chest. Keep your hands to your side, or across your chest. Try to keep your legs together, and as straight as possible.

Core stretch

The core stretch hits all the muscles in your midsection. The key to its effectiveness is that in addition to working your muscles, you’re also trying to balance yourself. It adds to the load on your midsection and can generate good results quickly.

Get down on the floor in the pushup position, with your arms extended. Then, raise and extend your right arm and left leg. Try to hold yourself in that position for at least 10 seconds. When you can no longer maintain that position, then lower your arm and leg, and then raise and extend your left arm and right leg. Again, hold the position for at least 10 seconds.

Core hold

The core hold (sometimes called a side plank) is somewhat more comfortable than the core stretch, but it too works your midsection by forcing you to balance yourself while your muscles contract.

To do this exercise, lie on your right side. Make sure that your legs are on top of each other. Then, using your arms, raise your upper body off the floor. Once you’re up, extend your left arm to help balance yourself. Hold this position for as long as possible. When you can no longer hold it, then lower yourself to the floor, roll over on your left side, and repeat the process.

Working the legs

Even though they’re the most significant and most active muscles in our bodies, we tend to overlook the legs when exercising. But strong legs make many tasks — from walking to climbing stairs to rock climbing and martial arts — a whole lot easier. Static leg exercises can help you build up weak leg muscles, as well as increase your muscular endurance.

Wall chair

For most people, sitting is very natural. So why not incorporate it into your workout? With the wall chair, though, sitting becomes less and less comfortable the longer you do it. But the benefits of the wall chair are more significant than sitting in your favourite chair.

To do the wall chair, stand with your back against a wall. Slowly lower yourself until your legs form right angles. Keep your back straight against the wall, and your feet planted firmly on the floor. The position you’re in resembles sitting in a chair. Hold this position for as long as you can. After about 30 seconds or so, you’ll notice the load on your thighs. After a couple of minutes, you probably won’t be able to hold this position.

While the wall chair works the upper leg, you can also blast your calves by raising yourself up on the balls of your feet. You’ll notice the effects quite quickly.

Horse stance

In many martial arts, people use the horse stance (sometimes called the horse riding stance) when practising basic blocking and punching techniques. While pretty much useless in combat, the horse stance is useful for building leg muscles. One karate instructor that I had as a teenager had the class spend 20 minutes in a horse stance each class, performing basic techniques. You can imagine the leg strength we all gained.

To perform the horse stance, place your feet about twice your shoulder width apart. Then, lower yourself down as if you were getting into a horse’s saddle. Don’t go too deep, but don’t go too shallow, either. And remember to keep your feet planted on the ground and your back straight.

As with the wall chair, you can also blast your calves by raising yourself up on the balls of your feet. I don’t advise doing this, though, unless you have relatively right balance.

Calf raise

The static calf raises if a great way to strengthen your lower legs. But what I like about this exercise is that you don’t notice the effects until you stop doing it.

To do the calf raise, place your feet at slightly more than shoulder-width apart. Then, raise yourself up on the balls of your feet. Bend your knees slightly for balance, and keep your back straight. Hold the position for as long as possible. As I mentioned earlier, you probably won’t notice he effects until you put your heels back on the ground.

Conclusion

Whether you’re trying to get into shape, get back into shape, or are already pursuing a fitness program, static exercises can benefit you. They’re easy to do, and they produce results. Best of all, you can do static exercises anywhere.

The post Building Strength, Without Moving a Muscle appeared first on GoogoBits.

Before you start shopping for the best rate on auto insurance, you should be aware of the factors that may influence the overall cost of your policy. Previous accidents, traffic violations and coverage level are only part of the equation.

Good Credit Matters

Many insurance companies will examine your credit score as a partial determinant of your auto insurance rate. Statistics demonstrate that drivers with proper credit are also safer drivers. You should find out your credit score. If your score is below average (usually lower than a 650), look for companies that will not check your credit. If your credit score is 700 or higher, seek out an insurance company that includes creditworthiness in its rate criteria.

Good Grades Often Matter

While working as an insurance adjuster, I often examined automobiles that had an honour student bumper sticker on them. More often than not, the corresponding insurance policy did not include a “good student” discount. Usually, this is because people forget to ask about these types of cuts when they are shopping for insurance. It is especially true when people buy for coverage online (since many online quote forms do not ask about student performance). If you have a good student in the family, then make sure that you ask about performance-based discounts.

Previous Gaps in your Insurance Coverage Matter

Even if you have never been in an accident, you will pay more for car insurance if you have previously driven without having insurance. It is the case even if you live in one of the many states that do not require drivers to carry liability insurance. With this in mind, you should do everything possible to maintain your auto insurance at all times. With the number of high deductibles, liability only policies available, a minimum level of coverage is often more affordable than you think.

Other Factors that can have an Impact on your Insurance Rate

Where you live

Auto insurance is usually more expensive in urban areas than in other areas. There are exceptions, especially if you live in a rural area where there are lots of automobile/animal accidents (Think deer in Wisconsin). What you drive

Almost everyone knows that more expensive vehicles cost more to insure. However, replacement part costs are also a factor. Some foreign cars are more costly to protect as a result of this factor (though most major international brands have high part availability).

What else you insure

If you own a home, you will get a discount if you insure your vehicle with the same company that carries your homeowner’s insurance. What many people don’t know is that renter’s insurance often works the same way. You should have renters insurance anyway, so why not ask about discounts before you purchase an auto insurance policy.

How you protect your car

Car owners with secure garages usually get lower rates. Anti-theft systems will often result in a discount as well. It is especially the case if your anti-theft system is “active” (i.e. shuts the car down if a thief attempts to drive it away). Passive systems (the ones that make loud noises) will usually not result in lower rates.

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Pensions, annuities, qualified plans, unqualified plans, periodic payments, lump sum distributions, rollovers – all have their own special treatment for tax purposes. Find out which rules apply in your case.

There are three groups of retirement plans, pensions, and annuities for U.S. federal income tax purposes:

• Pensions or annuities you receive from a qualified pension plan that your employer maintains to provide benefits to employees
• Benefits you receive when you retire on disability
• A commercial annuity plan that you purchase yourself.

Pensions and Annuities

Pensions and annuities are different types of arrangements but have similar tax treatment.

• For tax purposes, a pension is an “a series of definitely determinable payments made to you after you retire from work”.  So pensions are generally associated with benefits you receive from an employer-provided plan based on your years of service and your compensation while you were working.
• An annuity is “a series of payments under a contract made at regular intervals over a period of more than one full year”.  Payments can be fixed or variable, and you can take out an annuity contract on your own, or with the help of your employer.

Types of Pensions and Annuities

There are different types of pensions and annuities, regarding the period over which you get the benefits, who receives the benefits, and whether the benefits are fixed or variable.

• Fixed-period annuities:  You receive fixed amounts at regular intervals over a specified period.
• Annuities for a single life:  You, as the beneficiary, receive fixed amounts at regular intervals for life. The payments cease upon your death.
• Joint and survivor annuities:  You, as the first annuitant or beneficiary, receive fixed amounts at regular intervals for life.  After your death, the second annuitant (your spouse, dependent, or other designated beneficiary) then receives benefits for the rest of his or her life.  The amounts paid to the second annuitant may or may not be the same as for you as the first annuitant.
• Variable annuities:  You receive payments that may vary in amount, either over a specified period or for life.  The amount of the annuity payments may depend on the profits earned by the pension or annuity fund or a mutual fund, and cost-of-living indexes.

Employee Pensions and Annuities

To be considered a “qualified plan” for tax purposes, the plan must meet satisfied Internal Revenue Service (IRS) requirements.  Three different types of plans that generally meet this conditions are qualified employee plans, qualified employee annuities, and tax-sheltered annuity plans.  Whether a policy is qualified or unqualified will determine which method is used to determine the tax-free and taxable parts of the payments you receive from the plan.

Qualified Employee Plan

It is a stock bonus, pension, or profit-sharing plan set up by an employer by IRS requirements to receive unique tax benefits.  Contributions made to the plan are generally tax-deductible expenses for the employer and are tax-deferred for the employees.  The proceeds or benefit payments from these plans can also qualify for capital gain treatment or a particular 10-year tax option on lump-sum distributions if the participant qualifies.

Qualified Annuity Plan

It is a retirement annuity that an employer purchases for an employee, that meets specific IRS requirements.

Tax-Sheltered Annuity Plan

It is a type of retirement plan that is usually for employees of public schools and certain tax-exempt organisations.  Benefits are generally provided by purchasing annuities for the employees.  These plans are also known as 403(b) plans or tax-deferred annuity plans.

Section 457 Plans

These are deferred compensation plans for employees of a state or local government or a tax-exempt organisation.  You don’t need to pay the tax on employee compensation that is deferred under the plan or on earnings from the plan investments.  Pay the tax when you make withdrawals or distributions from the plan.

Qualified Plans for Self-Employed Persons

People often refer to these plans as H.R. 10 or Keogh plans.  They can be set up by sole proprietorships, partnerships, and corporations.  They can cover the self-employed individual as well as employees.

Taxation of Periodic Payments

The periodic payments you receive under a pension plan or annuity contract may be fully taxable or partially taxable, depending on your cost in the plan or agreement.  And, if you have more than one type of plan, such as a pension plan and a profit-sharing plan, you may need to make separate calculations to determine the tax-free and taxable portions of the payments you receive under each plan.  For example, the amounts you receive from one plan may be wholly payable, while payments from another plan may be only partially taxable.

Fully Taxable Payments

Generally, if you receive pension benefits from a plan your employer maintained, and you did not contribute to the cost of the pension plan, your benefits are fully taxable.  You have no value in the contract if:

• You did not make any payments, or are not considered to have made any payments toward the deal,
• Your employer did not withhold any contributions from your pay, or
• You got back all your contributions tax-free in prior years.

If you made voluntary employee contributions to the plan and you were able to deduct these contributions from your taxable income when you made them, any distributions you receive based on these voluntary contributions will be fully taxable when you receive them.  It includes any earnings on those contributions.

Partially Taxable Payments

If you paid part of the cost of the plan, you do not have to pay income tax on the part of your pension or annuity that represents a return of your value.  Any amount of the benefit that exceeds your cost would be taxable.

There are two methods for determining the tax-free and the taxable parts of your annuity payments.  These are the:

• Simplified Method, and
• General Rule

You will use the Simplified Method if you are receiving benefits under a qualified plan, including a qualified employee plan, an eligible employee annuity, or a tax-sheltered annuity plan or contract.  We cannot use This method for unqualified plans.

We use the General Method for unqualified plans, and generally cannot be used for qualified plans.

The method you use determines when you first start receiving annuity payments, and you continue to use this method every year that you are recovering your cost.

Once you determine the amount of each payment that represents a return of your cost, this amount stays the same throughout the period you receive benefits, even if the amount of your benefit payment changes, such as under a variable annuity contract.

Starting Date of Annuity Plan

Your cost in a pension or annuity plan is referred to as your net investment in the contract as of the annuity starting date.  It is the first day of the first period for which you receive a benefit payment or the time on which the obligations under the plan become fixed, whichever date is later.  For example, once you have completed all the payments, you are required to make to an annuity contract. And the plan benefits are scheduled to begin on February 1st of the year, for the period beginning January 1st, your annuity starting date is January 1st since this is the first period for which you make the annuity payments, even though you do not receive the benefits until February 1st.  For tax purposes, you would need to determine your cost as of January 1st in this example.

Your annuity starting date will also determine which method you must use, as follows:

• Annuity starting date after July 1, 1986, but before November 19, 1996, under a qualified plan:  You could have chosen to use either the Simplified Method or General Rule.
• Annuity starting date on July 1, 1986, or before: You would use General Rule unless you chose to use the Three-Year Rule.  That rule was repealed for annuities starting after July 1, 1986, so if you used the Three-Year Rule, your annuity payments would now be fully taxable.
• Annuity starting date on November 19, 1996, or later:  You must use the Simplified Method if you meet both the following conditions:
  • You receive your payments from a qualified employee plan, an eligible employee annuity, or a tax-sheltered annuity plan (403(b) plan), and
  • On the annuity starting date, you are under 75 years of age, or you are entitled to less than five years of guaranteed payments.  Otherwise, you must use General Rule.

Exclusion from Income

In these cases, the amount you can exclude from income is limited to your cost in the plan or contract.  Once you have recovered your total cost, the payments you receive after that are fully taxable.  If you have retrieved the total cost at the time of your death or the death of the beneficiary receiving the annuity (the last annuitant), the unrecovered cost can be taken as a miscellaneous itemized deduction on Schedule A.  In this case, the deduction is not subject to the 2% of adjusted gross income limit.

But if your annuity starting date is before 1987, you can continue taking the monthly exclusion for the part of the payment that you calculated as your cost for as long as you receive the annuity.  And if it is a joint and survivor annuity, your survivor can continue to exclude the same monthly amount.  In this case, the total amount excluded can be more than your cost in the annuity.

Your Cost or Investment in the Contract

Your cost is the total of all the premiums, contributions, or other amounts you paid.  It also includes any amounts your employer paid to the plan that you include in your taxable income.  Your cost does not include amounts that were withheld from your pay and contributed to the pension or annuity plan on a tax-deferred basis.  And, your value does not contain any costs you paid for health and accident benefits.

You must reduce your cost by refunds of premiums, rebates, dividends, loans that you did not repay, or any other tax-free amounts you’re received under the contract or plan up until the later of your annuity starting date, or the date on which you received your first benefit payment.

In general, you recover your cost over the period for which you are entitled to receive payments.  Using either the Simplified Method or General Rule, whichever is applicable, you are in effect prorating your cost over the period you receive payments, and any excess of each amount you receive, over your prorated value, is taxable income.

Your employer or plan administrator should give you a Form 1099-R, that shows your cost in box 9b.

Simplified Method and General Rule

Whether you use the Simplified Method or General Rule depends on whether the plan is a qualified or unqualified plan.  And it will also depend on when you started receiving payments.

You could use the Simplified Method if you started received payments after November 18, 1996, under a qualified plan.  After that date, General Rule is used only for nonqualified plans.  If you began receiving payments between July 1, 1986, and November 18, 1996, you could use either General Rule or the Simplified Method.

Simplified Method

Under this method, you take your total cost or investment in the contract, as defined above, and divide by the total number of anticipated monthly payments to determine how much of each payment is a recovery of cost, and therefore tax-free.  For an annuity payable for life, you can take the expected number of monthly payments from a table, based on the annuitant’s age on the annuity starting date.

How To Use the Simplified Method

To calculate the tax-free and taxable portions of your annuity payments under the Simplified Method, you can use the worksheet in the back of IRS Publication 575, Pension and Annuity Income.  To complete the spreadsheet, you will need to know your total cost in the contract and the total number of expected monthly payments.

Number of Expected Payments

• Fixed-period annuity:  The number of payments does not depend on anyone’s life expectancy, and is the total monthly payments for the contractual period.
• Single-life annuity:  The annuity is payable for your life, and the number of expected payments that you take from the table that is on the worksheet, based on your age at the annuity starting date.
• Multiple-lives annuity:  The annuity is payable for the lives of more than one person.  You can take the number of expected payments from Table 2 of the worksheet, based on the combined ages of the annuitants as of the annuity starting date.
  • If the annuity is payable to you and more than one survivor annuitant, you combine your age and the age of the youngest survivor annuitant.
  • If there is no primary annuitant and the annuity is payable to you and others as survivor annuitants, you combine the ages of the oldest and youngest annuitants.

General Rule

You must use General Rule if you receive pension or annuity payments from a nonqualified plan, including a private annuity, an annuity you purchased commercially, or an employer plan that does not qualify under the tests for the Simplified Method.

Under General Rule, the tax-free and taxable portions of payments you receive are by the ratio of your cost in the contract to the total expected return, which is determined based on actuarial tables.

Instructions for using General Rule and the actuarial tables you need to determine the tax-free and taxable portions of your payments get included in IRS Publication 939, General Rule for Pensions and Annuities.

Survivors

If you receive payments as a survivor annuitant, when the first annuitant had reported the annuity under the Three-Year Rule, you include the total amount of the payment in your taxable income.  If the primary annuitant had been using General Rule, you would continue to apply the same exclusion percentage to the payments you receive, and the resulting tax-free portion on that amount of a payment will then remain fixed.  If there are subsequently any increases in the payments you receive as a survivor, the additional amount would be fully taxable.

If the first annuitant used the Simplified Method to determine the tax-free and taxable portions of the payment, you as the survivor annuitant continue to use the same tax-free amount for the payments you receive.

Lump Sum Distributions

A lump sum distribution is a distribution of the entire balance in a particular type of plan, all at once.  On Form 1099-R, you should check the “Total distribution” box in 2b.  Distribution of the entire balance from an unqualified account, such as a commercial annuity you purchase yourself, or a Section 457 deferred compensation plan, does not qualify for the special tax treatment of lump sum distributions.

There would be optional methods of calculating the tax on lump-sum distributions from a qualified employee plan or a qualified employee annuity, if the participant were born before January 2, 1936.

1.      The part of the distribution that corresponds to participation before 1974, they consider it as a capital gain subject to a 20% tax.  The role of the distribution of involvement from 1974 on, would be taxed as ordinary income.

2.      You can report the part of the distribution for participation before 1974 as capital gain and use the 10-year tax option to figure the tax on the role of the involvement from 1974 on.

3.      You can use the 10-year option to determine the charge on the entire amount of the distribution.

4.      You can roll over part or all of the distribution.  You would not be subject to tax this year on the part you roll over.

5.      Or you can report the entire distribution as ordinary income.

To use these optional methods, you will need to file Form 4972, Tax on Lump-Sum Distributions.  If you choose the capital gain treatment, you will complete Part II of Form 4972.  If you want the 10-year tax option, you will complete Part III.

The 10-year tax option is a unique formula used to calculate the tax on the ordinary income portion of the lump sum distribution.  The tax resulting from this calculation is paid in the current year and not over ten years.  The ten years refer to the nature of the count and not to the payment of the tax.

Rollovers

You can roll over all or part of the distribution you receive from a qualified employee plan or a qualified employee annuity into another qualified plan or your IRA.  No tax would be currently due on the amount you roll over.  The not rolled over part of the distribution that they would consider it as ordinary income.

A rollover generally needs to be made within 60 days from the date you receive the distribution.  You can do a direct rollover from one qualified plan to another, or to your IRA.  Or you can receive the distribution and then roll it over to a qualified plan or IRA within 60 days.  In this case, the administrator of the plan from which you make the distribution will withhold a 20% income tax from the amount distributed.  If you decide to roll over the amount of the distribution before withholding, you will have to put in withheld money to replace the 20% tax.  Otherwise, 20% will be subject to tax in the current year.

If you are a surviving spouse you can roll over a distribution you receive from a qualified plan in which your deceased spouse participated.  But a beneficiary other than the participant’s spouse cannot roll over an allotment.

Disability Pensions

Disability benefits are generally taxable if your employer provides them.  They are reported as wages for tax purposes until you reach minimum retirement age.  Once you reach minimum retirement age, your disability benefits get reported as a pension or annuity.

You might be entitled to a tax credit if you were permanently and disabled when you retired.  You can see IRS Publication 524, Credit for the Elderly or Disabled, to see if you qualify.  This credit is claimed on Schedule 3 if you file Form 1040A, or on Schedule R if you submit Form 1040.

Purchased Annuity Contracts

If you buy a commercial annuity on your own, with life insurance proceeds, for example,  the annuity payments you receive are taxed as pension and annuity income from a nonqualified plan.  You would generally have to use General Rule to determine the taxable portion of the annuity payments you receive.

How To Report

You should receive Form 1099-R, Distributions from Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc..  You can report the total amount of the payments and distributions you received during the year in box 1, and you can show the amount taxable as ordinary income in box 2a.  These amounts are reported on lines 16a and 16b on Form 1040, or on lines 12a and 12b if you use Form 1040A.

If your Form 1099-R does not show the taxable amount, (you should check the box) you will have to use General Rule explained in IRS Publication 939 to figure the taxable part you need to enter on line 16b for Form 1040, or 12b for Form 1040A.

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How to find and access energy needed to keep Earthly civilization going and growing is an old problem. But the solution to that problem may not be on the Earth.

Modern, industrial civilisation has provided a lifestyle for ordinary people that Kings and Emperors in previous eras would have envied. The growth of technology has contributed appliances that do the work for each person that previously was done by dozens of servants. People have access to mobility, comfort, entertainment, and information undreamed of just a short time ago in human history.

The problem is that all of those vacuum cleaners, plasma TVs, home computers, and automobiles need the energy to make them work. The advance of technology means more devices requiring more power. The growth of population means more people demanding those devices requiring more energy. And, to top everything off, regions of the world emerging from third world status—India and China being prime examples—create an even higher demand for energy.

Nearly every source of energy on Earth presents problems. The burning of oil and coal causes pollution, including the sort that some point to as the cause of global warming. Potential new sources of oil tend to be in places that are either politically unstable, such as the Middle East, or in environmentally controversial areas, such as Alaska or offshore from California or Florida. Nuclear power, while safer than in previous years, is still politically contentious and still produces radioactive waste that is difficult to dispose of. Renewable sources, such as ground-based solar and wind, cannot generate enough energy to keep pace with the growing demands of human civilization.

Is the world condemned to a Hobson’s choice of rationing energy or else accepting the dangers and tradeoffs of exploiting more and more of the Earth’s energy sources? Perhaps not. The answer may well lay about a quarter of a million miles away, at a place people can see on most clear nights. Indeed, the Earth’s Moon may be the Persian Gulf of the later 21st Century, if we have the will to make use of what it has to offer.

Helium 3 Fusion

Over billions of years, the solar wind has deposited an isotope called Helium 3 onto the lunar surface. Helium 3 is not found in nature on the Earth, though we have produced the trace amounts in nuclear experiments. Helium 3, however, may be the fuel which powers the future, when fusion power becomes practical

While the promise of fusion energy remains elusive, it has the potential of unlocking a source of power that could sustain civilisation for thousands of years. One problem is that some forms of fusion, using deuterium and tritium (isotopes of hydrogen) release eighty per cent of its energy in the form of radioactive neutrons, significantly increasing cost and safety issues for any potential commercial application.

Fusion using helium 3, on the other hand, produces little or no radioactive byproducts. The closest place where we can find helium 3 in any quantity is the surface of the Moon, where it is estimated a million tons of the isotope exists, depositing over billions of years by the solar wind. Helium 3 could be mined from the Moon and delivered to Earth where just a few tons of the isotope could supply all the power needs of the United States for a year, without pollution

Research into technology to not only develop fusion power plants using helium 3 as fuel but to also mine helium 3 from the lunar surface is currently being conducted by the Fusion Technology Institute at the University of Wisconsin at Madison. At the current pace of research, helium 3 fusion power is still decades away, though scientists suggest that they might short the time significantly given more resources and attention.

Space-Based Solar Power

Dr David Criswell at the University of Houston at Clear Lake thinks he has a better idea. Why mess around with developing the technology to build fusion power plants, when there is already a fusion power plant readily available? That fusion power plant is called the Sun. The problem is how to tap into the energy it produces.

Space solar power is an old concept, first developed by Peter Glasser at Arthur Little in the late 1960s. The idea is that substantial solar collectors, located in orbit around the Earth or on the lunar surface, would collect the flood of energy flowing from the Sun and beam it to the Earth via microwaves. On Earth, the microwaves would be converted into electricity and fed into the power grid. We also see space-based solar energy as a means of powering space-based industries and mining operations.

In the early seventies, Dr Gerard O’Neill of Princeton suggested that we could decrease the cost of building these “powersats” by using off-world resources, from the Moon or Earth-approaching asteroids. A more recent study, conducted by the National Research Council, suggests that advances in solar cell efficiency, robotics, composite materials, and digital control systems, as well as successful tests of wireless transmission technologies, make space solar power even more feasible.

Dr Criswell believes that he has a more elegant idea. Instead of building considerable powersats in high Earth orbit at great expense, why not make solar collectors on the lunar surface? Criswell envisioned robot miners/factories travelling the lunar surface, mining it for silicon, and creating solar cells and laying them out on the Moon for a fraction of the cost of building space-based powersats. We would beam the power to Earth, via small, relay stations in orbit.

The advantage over Helium 3 fusion is that the technology to build this greatest of all power grids exists today. Criswell estimates that the lunar surface captures 13 trillion terawatts of energy from the sun. Catching even one per cent of this energy would provide prosperity for ten billion people on the Earth.

The Moon and the Hydrogen Economy

A recent book Moon Rush, written by aerospace engineer Dennis Wingo describes, a third way the Moon, as well as other celestial bodies such as Earth-approaching asteroids, could be the source of a solution to Earth’s energy problems. Wingo makes the case that billions of years of impacts by nickel-iron asteroids have deposited large quantities of platinum group metals on the Moon. The reason this fact is essential is that these kinds of metals are a critical component in hydrogen fuel cells.

Fuel cells have the potential to provide power for everything from automobiles to office buildings and small factories, with the only byproduct being water vapor. In order to create this chemical reaction, platinum is needed as a catalyst.

In his book, Wingo suggests that there are not enough reserves of platinum group metals on the Earth to support a hydrogen economy run by fuel cells. Also, the refining of platinum group metals on Earth generates a considerable amount of toxic waste. Wingo suggests that platinum group metals mined and refined on the Moon, or Earth-approaching asteroids, could make up the difference and jump-start a hydrogen economy on Earth.

The Future

As the United States and other countries contemplate sending people back to the Moon for the first time in decades, a debate has arisen over whether it is worth the cost. Science and exploration are undoubtedly essential things, but if the Moon is the source of the solution to Earth’s energy problem, then going back to the Moon might be worth any cost. Just as earlier explorers set forth across trackless oceans for “God, glory, and gold”, future explorers may set forth on an even more trackless, airless ocean for “Energy, commerce, and science.” It is a bright future, filled with the potential for prosperity and high adventure.

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Article will provide brief overview of creative financing mortgage alternatives, highlighting how to assume a mortgage loan, how to receive seller financing, how to buy a home with no money down, and lease options.

Low-interest rates are encouraging many people to take the first step toward homeownership. Those who have never purchased a home may be unaware of how extensive the home buying process may become. Lenders request a variety of documents to verify employment, income, credit, and so forth.

Sadly, many individuals with hopes of purchasing their first home are unable to do so because they do not meet bank qualifications. Reasons for a mortgage denial may include poor credit, recent bankruptcy, foreclosure, and self-employment. Individuals who deny a mortgage may become discouraged. However, there are several alternatives to a conventional bank mortgage. Many lending institutions require a 3% down payment, acceptable credit history, and low debt to income ratio. Fortunately, some private investors and lenders are willing to offer non-conventional mortgages to those who are not ideal candidates for banks.

Creative financing a home mortgage includes a variety of options such as assuming a mortgage, buying a home with no money down, seller financing, and lease-options. Anyone can purchase a home using one of these methods regardless of credit or income. These methods make financing a home quick and easy. In some cases, the new home buyer may even save money.

Assumable Home Mortgages

Finding a home with an assumable mortgage is tricky and will require in-depth research. However, once you have located an assumable property, the benefits are endless. Those interested in assuming a home loan should work with a real estate agent or private investors. Real estate investors are ideal because they are in the business of buying cheap homes and selling them for a profit.

Thus, they are likely to have information on finding an assumable mortgage. Of course, if you are also in the market of assuming a mortgage for investment purposes, a real estate investor may not be as willing to offer assistance. On occasion, a real estate agent may receive property with an assumable mortgage. Those interested in purchasing a property should inform their agent of their interest in assuming a home. Only two types of mortgages that are assumable – adjustable rate and FHA loans.

Once you locate an assumable property, the buyer interested in the property should obtain and review loan papers. These papers will indicate the original loan amount, payment, and terms. The next step is to contact the lending institution and request an assumable loan package. The buyer will have to meet specific requirements before assuming a loan. Still, assumptions may be more comfortable than applying for a new mortgage. Some lending institutions require that those considering the home mortgage pay a minimum down payment. In most cases, the new mortgage holder will only need to prove income and have acceptable credit.

Assuming a mortgage is a more attractive feature when a buyer has a substantial amount of cash on hand. The new buyer will generally have to offer the seller the difference between the loan amount and the selling amount. For example, if a home is selling for $100,000 and the payoff for the loan is $80,000, the person assuming the loan will pay the seller $20,000 in equity, and continue to pay off the remaining balance of $80,000. There are instances when a person may assume a loan without paying capital to a seller. This situation is common when the original homeowner is a motivated seller or deceased.

Buying a Home with Zero Down

An additional reason why many people are unable to purchase their first home is that they do not have money for a down payment. Fortunately, there are several first time home buying programs and down payment assistance programs to help. Future homeowners should contact local lenders and ask for information about “no money down home loans.” In most cases, home buyers are required to attend a home buying workshop before they are eligible to receive assistance. Real estate agents and online mortgage brokers also offer helpful information on receiving home loans with zero down

The downside to home loans with zero down is that many have income restrictions. It is great for lower income individuals, but not good for everyday hard working individuals. Nonetheless, mortgage brokers are generally willing to diligently search for loans for individuals with little or no money for a down payment. Those interested in buying a home with no money down should be aware that these home loans may carry a higher interest rate. Many lenders consider “no money down” candidates risky. Thus, they increase the interest rate of a loan to compensate. To avoid a higher interest rate, future homeowners may consider adjusting their spending habits to save money. A down payment of as little as $2,000 can make a difference.

Seller Financing

Seller financing is the perfect alternative for individuals who are unable to receive traditional funding for a home loan. In this case, the seller acts as the lender for the property. Instead of making payments to the bank, the new owner will make payments directly to the seller. The buyer and seller will agree on financing terms which are typically shorter than a traditional mortgage.

At the end of the term, the buyer will likely owe a balloon payment for the property. Seller financing is excellent for individuals who are rebuilding their credit. They agree to seller financing for three or four years to allow time for credit improvement. Once their credit is acceptable, the buyer will finance the balloon payment with a traditional lending institution. They use the money to pay-off the original owner and begin making regular payments to the bank.

Lease Options

A lease option is a contractual agreement between a seller and buyer that allows the buyer to rent a property as they save money for a down payment or while improving their credit. The buyer locks into a future purchase price and agrees to buy the property within a reasonable amount of time. Buyers and sellers should obtain a lease option agreement and establish the following terms:

• Future Purchase Price

• Maximum Length of the Agreement

• Monthly Rental Price

Some sellers place a clause in the lease option agreement requiring buyers to pay a penalty fee if they decide at the end of the term not to purchase the property. Also, if a percentage of the buyer’s monthly rent was being held in an account to assist with their down payment, the seller has the right to refuse to refund this money. Lease options are ideal for both buyers and sellers. Before signing a lease option contract, both parties should have the forms reviewed by a real estate attorney.

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Online pharmacies, discount cards, plans that offer free medication… Find out how to save hundreds of dollars on prescription drugs.

Prices for prescription drugs have skyrocketed in the last couple of years –A 7.1 percent hike in 2004 alone, according to a market study released by AARP. With the escalating costs and the ever-higher number of people without full benefits, is there a way for families on an average income to afford prescriptions?

Although there are no fool-proof methods, here are some options that may help you reduce your expenses.

Find Out Beforehand What Your Insurance Covers

Do you know how much your co-payments for prescription drugs are? Is there a maximum amount per year? How much? What happens if you reach the maximum? Is there a formulary (a list of covered drugs) for your plan? How are out-of-pocket expenses prearranged? These are all valid questions to which you should have an answer before you sign with any insurance plan. The problems become even more urgent when you get older or if you take a prescription on a regular basis.

Get a Discount Prescription Card

Your employer’s group insurance plan may provide you with one, or you can choose to sign for an idea on your own. Some drugstore chains (such as Eckerd) offer their card, or you can go with a national plan.

Plans have the added benefit to let you shop at any pharmacy, but they usually charge you a yearly fee (around $50 covers the whole household). Discount cards may save you up to 30 percent of the quoted price, depending on the drug. If you take a monthly prescription that runs into the hundreds, you’ll probably recoup the fee in a couple of months.

People with or without medical insurance can use these cards, and many states offer special programs that award these cards to seniors.

Shop Around

They rarely fix the prices, especially when it comes to generics. Compare-shop at different local pharmacies to find the one that offers the best deal. Costs can also vary according to drugs, so because a pharmacy charges less for something doesn’t mean it would be cheaper to shop there for all prescription drugs. Ask around.

Ask Your Doctor For Free Samples

It may not be an ongoing solution, but it can still save you a few dollars. Drug companies usually leave samples at doctor’s offices, so why not take advantage of them? Free samples may also be a great option if you’re trying a new medication. There’s always a chance you may not respond well to it or may experience bothersome side effects and would have to switch to a different one. Free samples would save you the expense of buying a large quantity of something you won’t be able to take.

Switch to Generics

A recent investigation revealed the business behind brand name medications. As an example, a month-supply of Prozac 20mg costs about $95, while the generic Fluoxetine HCL is only $11. Most drugs show a significant difference in price between the brand name version and the generic one, although, by law, both must have the same amount of active ingredients in them.

Why the difference? The fillers in the drug plus the packaging differ. Your doctor should be able to tell you if there’s a generic equivalent you can take and if it’s ok to switch (some people are allergic to some of the fillers, so don’t do this on your own).

Go Online

Companies such as Wal-Mart and Target have online pharmacies that offer a significant discount on prices you would find at their regular store. Even chain drugstores such as CVS sometimes offer lower rates when you shop online. Licensed companies have a Verified Internet Pharmacy Practice Sites seal on their website.

Do Without

You may be surprised to learn that many prescriptions drugs have close equivalents in over the counter (OTC) drugs. It is the case with many pain relievers and flu and allergy medication.

In many cases, changes in lifestyle can alleviate symptoms enough that a prescription is no longer needed. Cutting caffeine, citric fruits, and juices, and high-fat snacks can reduce your need for antacid medication. Always talk to your doctor about alternatives.

Go North (or South) of The Border

Although there is much controversy about foreign pharmacies selling prescription drugs over the internet, some of them are legitimate companies who can merely afford to sell drugs cheaper. A recent investigation by Eyewitness News revealed that Lipitor costs 164 percent less in Canada than in the US, and Celebrex is almost 500 percent less expensive in Mexico. Genuine foreign pharmacies will ask you for an American prescription and evaluate it through their medical team. You should be cautious of online companies willing to sell you anything without a prescription. If you live near the border, driving into Canada or Mexico may also be an option.

Split Your Pills

Because prescriptions usually cost the same no matter the dosage, you could buy a more significant strength and split it into two doses. For example, instead of buying ten 50mg-pills, you could buy ten 100mg-pills, break them in half, and get twenty doses for the same price.

It doesn’t work with all pills, as you can’t split some of them shouldn’t (or physically can’t). It is the case with timed-release medicines, drugs that require a precise dose (such as seizure or heart medication), and anything that comes in a capsule. Consult with your doctor about the possibility, as it could save you 50 percent of your monthly costs. If your doctor approves, buy a pill splitter at your local pharmacy for about $5 to make the task as stress-free as possible.

Find Out If You Qualify for Patient Assistance Programs

If your income is too high to qualify for government assistance, these private or pharmaceutical company programs (which are non-profit and mostly run by volunteers) can help you gain access to your medication for free. Most of these patient assistance programs get your prescriptions directly from the appropriate drug manufacturer by filling out forms on your behalf. It does not cover all medications, and not all drug manufacturers have patient assistance programs in place, but the system is worth a try.

Free Medicine Program is an example. For a $5 application fee, they will research all available programs and see if you qualify for free medication. If you don’t, they’ll refund your money. Needy Meds offers all the information you need to do this process on your own. Both companies have a user-friendly website with an extensive list of available medications. Check first to see if yours is listed. If it’s not, there’s a good chance that any of the free programs currently available. may not cover it

The post 10 Ways to Save Money on Prescription Drugs appeared first on GoogoBits.

If you use your own vehicle for business purposes, you may be able to take a tax deduction. If you are an employee, you can deduct the expenses as an itemized deduction. If you are self-employed, your expenses can be deducted as a business expense.

If you use your vehicle for transportation related to your work as an employee, you can deduct your expenses for business use of your car, subject to the rules on deductible transportation expenses. You would need to file Form 2106, Employee Business Expenses, and take the deduction as a job-related itemized deduction on Schedule A. If you are self-employed and use your vehicle in your business, your expenses are business expenses, and you would generally report it on Schedule C, C-EZ, or F.

If you qualify, you can deduct your actual expenses or use the standard mileage rate. If you use actual costs, you will need to divide your expenses between deductible transportation expenses and personal expenses. You can allocate these from mileage for each purpose. And if you use the standard mileage rate, you will need to keep track of your mileage for work or business use of your vehicle.

Interest on a Car Loan and Property Taxes

Interest on a loan you take out to purchase a vehicle and property taxes on your vehicle is generally separate thing. These are not included in the standard mileage rate.

Interest

Interest you pay on a car loan is personal interest and is generally not deductible. But if you take out a home equity loan, that qualifies to deduct mortgage interest, you may be able to take an itemized deduction for the interest on Schedule A.

If you are self-employed and use the vehicle in your business, you can deduct a percentage of your interest, based on the business use of the car, as a business expense, on Schedule C, C-EZ, or F, for example.

Property Taxes

Personal property taxes are by the value of your vehicle can be taken as an itemized deduction, even if you did not use the car for business. If you are self-employed, you can take the business percentage of personal property taxes as a business expense, and the balance as an itemized deduction.

Standard Mileage Rate

The standard mileage rate changes periodically and the Internal Revenue Service (IRS) publishes it. If you elect to use the standard mileage rate for a vehicle that you own, you must use it the first year the car is available for use. After that year, you can use either actual expenses or the standard mileage rate. If you elect to use the standard mileage rate for a vehicle that you lease, you have to use it for the entire lease term.

Depreciation

The standard mileage rate includes an allowance for depreciation, so if you decide to use it, you cannot take depreciation or the special depreciation allowance.

Exceptions to Using Standard Mileage Rate

There are some cases in which you cannot use the standard mileage rate. You cannot use it for cars for hire, such as taxis, or when you employ five or more vehicles at the same time in your business. You are not considered to be using them at the same time if you alternate between vehicles. A rural mail carrier who receives a qualified reimbursement cannot use the standard mileage rate. And, if you are using a vehicle provided by your employer, you cannot use the standard mileage rate.

Expenses in Addition to the Standard Mileage Rate

You can deduct business-related parking fees and tolls in addition to the standard mileage rate, except for parking at your regular place of work, which is considered part of your nondeductible commuting expense.

Actual Expenses

If you use actual expenses for the use of your vehicle, you can include gas, oil, repairs, tires, insurance, licenses and registration fees, garage rent, parking and tolls, and lease payments or depreciation.

Depreciation

There are three ways to recover the cost of your vehicle for tax purposes when you use the vehicle for business purposes:

• Section 179 deduction
• Special depreciation allowance
• Depreciation deductions

Section 179 Deduction

You can take the section 179 deduction for part or all of the business portion of the cost of a vehicle, instead of taking depreciation over the years. This deduction can be made only in the first year the vehicle of service. You cannot claim a section 179 deduction you started using for personal purposes one year and then starting using for business purposes in a later year.

50% Business Use Test

To qualify for the section 179 deduction, you must use the vehicle more than 50% for business. You then take your business percentage and multiply it by the cost of the vehicle to determine the amount eligible for the section 179 deduction.

Limits

Three limits apply to the section 179 deduction:

1. There is an overall limit on the amount you can claim as a section 179 deduction for the year. It is a fixed dollar amount that may change periodically. This amount can be found in the instructions and publications the IRS updates each year. And, the total section 179 deduction after limitations cannot be more than your taxable income from the active conduct of a trade or business – the section 179 deduction cannot generate a loss.
2. Sports utility and certain other vehicles are subject to a fixed dollar limit on the amount of the vehicle’s cost that you can take into account in calculating the section 179 deduction.
3. The total amount of your section 179 deduction and your depreciation deduction for a qualified vehicle you place in service during the year is limited to a certain fixed dollar amount.

Effect on Basis

The section 179 deduction reduces your basis in the vehicle for purposes of calculating depreciation and for calculating an eventual gain or loss on the sale or disposal of the vehicle. Also, if you meet the 50% business use test the first year, and in a subsequent year your business use drops below 50%, you may have to recapture, or include in your income, any excess depreciation in that following year.

How To Claim the Section 179 Deduction

You must claim the section 179 deduction in the year you purchase the vehicle and start using it for business or work. If you are an employee, you need to file Form 2106, Employee Business Expenses. If you are self-employed, you will use Form 4562, Depreciation and Amortization, to claim the deduction.

Special Depreciation Allowance

In the year you buy a vehicle and place it in service, you can deduct 50% of the business portion of the cost as a special depreciation allowance, provided you use the vehicle more than 50% for business or work. You figure the special depreciation allowance after the section 179 deduction, if you choose to claim it, and before calculating depreciation. Both the section 179 deduction and the special depreciation allowance reduce the basis of your vehicle.

Statement of Election Not to Claim Allowance or to Claim 30%

You can choose not to claim this special allowance, or you can request a 30% allowance instead of 50%. If so, you must attach a statement to your tax return, indicating the class of property (5-year property in this case) and that you are electing to claim 30% instead of 50%, or that you are choosing not to claim the special depreciation allowance. The election you make will apply to any other 5-year property you placed in service during the year – the election is made based on a class of property.

Basis Reduction

If you choose not to claim the special allowance, you need to attach the statement to your return because if you do not, the basis in your vehicle will be reduced by the amount of the allowance, even if you do not claim it.

Depreciation Deductions

To calculate depreciation on your vehicle, you need to know the basis, when you placed the vehicle in service, and the depreciation method to use.

Basis

If you purchase a vehicle and place it in service the same year, your depreciable basis is the business percentage of the cost, less any section 179 deduction or special depreciation allowance you take. If you convert a vehicle from personal to business use, the basis for depreciation is the fair market value or your adjusted basis in the vehicle on the date of conversion. Your adjusted basis would depend on how you acquired the vehicle (purchased it, received it as a gift or inheritance), and would include any increases or decreases in the original basis, such as permanent improvements or additions to the vehicle, depreciation taken in prior years, or a casualty loss, for example.

Depreciation Method

Generally, you use the Modified Accelerated Cost Recovery System (MACRS) to depreciate vehicles. But if you used the standard mileage rate to deduct expenses the first year you used the vehicle, you will have to use the straight-line depreciation method if you decide to use actual costs in a later year. Also, to use MACRS, you must use the vehicle more than 50% for business. Otherwise, you must use straight-line.

Accelerated depreciation methods include the 200% declining balance method and the 150% declining balance method. When choosing a depreciation method, you may want to consider which way will give you the most tax advantage, based on your circumstances, financial projections, and tax planning. The 200% declining balance method provides the most significant deductions in the earlier years, followed by the 150% method. The straight-line method offers for regular depreciation deductions over the life of the vehicle.

Depreciation Chart

You can find a MACRS depreciation chart in IRS Publication 463, Travel, Entertainment, Gift, and Car Expenses. Once you determine the basis of your vehicle, when you placed it in service, and the depreciation method you will use, you can use the chart to find your depreciation deduction for the year. There is a limit on the maximum depreciation deduction that can be taken each year, depending on the year in which you placed the vehicle in service. The referenced publication also includes a table with these limitations.

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Has your child always loved school but now tries every trick in the book to keep from attending? Maybe he is being bullied. Bullying is a real threat to a child’s safety and security. Learn what a bully is, why they act as they do and how to help your child cope.

Has your child always enjoyed school, but now makes excuses because he doesn’t want to go? Do stomachaches, headaches and other mysterious ailments appear in the night or at breakfast? If so, it may be that someone is harassing your child at school. Yes, he may be the victim of bullying.

Where Does Bullying Occur?

Bullying takes place in cities, small towns and rural communities. It is something that happens everywhere in the world. Some adults believe bullying is a part of childhood and that it’s all part of growing up. It isn’t true. Bullying is an activity that is unacceptable. All children should be able to live their lives and have fun without having to worry about their safety and security.

What is Bullying?

Bullying covers a wide range of activities. It can be the act of pushing, shoving and other physical activity, or it can be verbal threats or something as simple as being made fun of because a child wears glasses, looks different, acts different or gets either excellent or poor grades. Bullying is anything that takes the pleasure out of a child’s life or makes him feel depressed or alone. It can turn a simple event such as riding a school bus to school, going to a locker, entering the bathroom, or playing in the schoolyard frightening and scary.

Physical Bullying

Physical bullying consists of the following:

• Pushing, shoving, hitting, kicking, pinching or pulling hair.

• Forcing someone to do something that they know is wrong or something that they don’t want to do

• Stealing, hiding or destroying objects that belong to someone else.

• Threatening someone, even if the threats are never acted out.

• Taking something that belongs to others, such as gloves, mittens, a hat, a game or any other personal belonging and not giving it back; playing keep-away with items that belong to others.

Verbal Bullying

• Taunting, teasing, mocking, or insulting others.

• Calling someone names, even in fun.

• Giving someone the cold shoulder by not talking to them

• Spreading rumors and lies about others

• Telling someone they cannot play with people of their choosing.

Emotional Bullying

This type of bullying is very subtle and is very common in girls, though boys sometimes use it as well:

• Isolating someone

• Shunning peers and excluding them from games, lunchroom chatter and not including them when handing out invitations to parties.

• Spreading lies and rumors to expel someone

• Anything that causes another person emotional pain is considered emotional bullying

Racial Bullying

This type of bullying can be acted out on those of different cultures and races:

• Making jokes about the child’s ancestry or country of origin.

• Slurs about the child’s race or the color of his skin

• Calling someone names that refer to his race or skin color.

• Making rude comments about someone’s cultural traditions or religion.

Cyberbullying

In recent years a new trend of bullying tactic has appeared; cyberbullying. It is something that happens on the Internet. Bullies are taking full advantage of today’s technology to attack their victims. There are as many bullying incidents online as there are on the playgrounds of our schools. If your child is a victim of cyberbullying, don’t make him stop using the computer. Instead, monitor his online activities to assure he has a positive Internet experience.

What Constitutes Cyberbullying?

• When a person is harassed in any way while online, including in a chat room or through a messenger service or e-mail.

• When someone threatens a person online

• Anything that makes a person feel uncomfortable while online.

• When someone accesses information that’s on a computer and uses it against the victim.

• An incident that happens online to inflict emotional pain, embarrassment, depresses the victim, makes the victim nervous or causes him to stop using his computer.

Dealing with Cyberbullying

• Advise your child to let you know if he someone is bullying online immediately.

• Ask him to show you what he does on the Internet.

• Encourage him to save any threatening messages he received so that you can use it as evidence.

• Save any threatening messages in a particular folder on your computer and back them up in case your computer crashes.

• If your child continues to be threatened or bullied while online, notify the police and show them the evidence you’ve collected.

Gang Bullying

Gang bullying is prevalent in today’s society. It occurs when a group of people bullies a single person. It is much more frightening than being intimidated by someone. A child may feel he can defend himself against one person but loses hope when he alone.

What Constitutes Gang Bullying?

Gang bullying occurs when a group of people, children or adults, do the following:

• Won’t let a child pass.

• Threatens to harm their victim.

• Becomes physical in any way that inflicts pain on their victim, such as hitting, shoving, pinching and hair pulling.

• When some people demand money of their victim

• When they steal or destroy personal property of the victim

• When they spread rumors or lies about their victim in hopes of isolating him

• The infliction of any emotional or psychological pain

• When the victim is forced to do something he knows is wrong or that he doesn’t want to do.

Take Action

Encourage your child to do the following if someone is bullying him:

• Tell an adult that he feels he can trust; a parent, teacher, the school principal or counselor or another person of authority. Even a school volunteer will help.

• Advise him to walk with a group of friends so he will feel safe and have witnesses to any incidents of bullying.

• Ask a parent, grandparent, guardian or caregiver to walk with him.

• If he feels threatened and there is no adult around to assist him, he should seek a safe place and call 911 or another emergency number to get the police involved.

Why Kids Bully

Bullies often have an underlying reason for their actions. They frequently target kids who are different than themselves and work to exploit the differences. They choose their victims carefully and pick on those who they think will not retaliate. The victim might wear glasses, be overweight, have cultural differences, have learning disorders or invisible disabilities, such as Asperger’s Syndrome. They can choose other victims because they excel in academics or get very poor marks. Any difference at all makes them a target.

Inside the Mind of a Bully

No one can tell if a child is a bully by looking at them. Bullies often deceive teachers and other people of authority because these children are always on their best behavior when adults are present. These kids are charming and manipulative. Bullies are often the most popular kids at school. Others are children who have social disorders, or who are dealing with stressful situations in their life at home. Possibly their parents are separated or getting a divorce. Maybe the child is physically, emotionally or sexually abused. Perhaps they are the victims of bullying by a parent, guardian, caregiver or another person in authority. Some bullies see their actions as usual because their family life is dysfunctional. We can place them in a home environment where anger, cursing, hitting, and name calling is ordinary. In this case, their self-esteem is very low, and they get a boost when they taunt, torment and threaten others.

Whatever the scenario, bullies usually bully their victims as a way of dealing with problems in their own lives. They seek out weaker kids to be accepted, feel important and be in complete control. Bullies come in all sizes and shapes, but usually, pick victims who are smaller than they are.

Another type of bully is the one who is kind to your child’s face when they are experiencing a one-on-one situation but bullies the child when others are present. It usually occurs because of peer pressure. All kids want to be accepted and will do almost anything to make acceptance possible. So, when there are others around, they mimic their actions. They think it’s fun to show-off and they enjoy the attention that they get from their peers.

Potential Targets

Children who fall into the following categories are often the victim of bullying:

• Those with learning disabilities and disorders, or with invisible disabilities.

• A person of a minority; a girl or boy taking a non-traditional class

• A child who is very mature or immature.

• Children who are loners.

• Children who are physically or mentally handicapped.

• Children who experience overwhelming emotions or who are easily upset.

• Shy children and those with low self-esteem.

• Children who are small or large for their age.

Signs That Your Child is a Victim of Bullying

Be sure to listen to what your child is telling you. Some children tend to put their real feelings into situations that aren’t forthright. Be alert for hidden messages. Then, talk to your child about the case. Talking about the school bully and knowing you care about what’s happening in his life can be a big help to your child. Your child will feel very venerable when discussing the subject, so be sure to show him love and support.

Never make light of reports of bullying and don’t add fuel to the fire by becoming angry or calling your child a wimp. Don’t allow your child to see that you are upset over a bullying incident. The child may misinterpret anger or sadness for disappointment in them. Always let the child know that you believe the bullying incidents are real and that you understand how he feels. Assure him that the bullying is not his fault and that bullies are often confused and unhappy people who feel bad about themselves.

If you suspect your child is the victim of bullying, ask these questions:

• Do you enjoy riding the school bus to and from school?

• What types of activities take place in the school cafeteria and hallways at lunchtime?

• Who do you walk with to meet the school bus and do you walk home from the bus with the same friends?

• Are there any bullies in our neighborhood or at your school?

• Do you know anyone who receives threatening e-mails or messages while they are on the computer?

• Do you know anyone who gets threatened, either verbally or physically?

• Do you know anyone who is taunted, teased or called names?

• Do you have any enemies? If so, why do you think they are your enemy?

Questions such as these will make it easier for your child to open up and talk about any incidents of bullying that have happened to him. The child will also realize that other kids are victims of bullying and he won’t feel so alone.

Have young children draw pictures or use hand puppets to reenact incidents of bullying. Make it a game. You may be surprised at what you find out.

Tips for Victims of Bullying

If your child gets bullied, give him the following tips to help him cope safely with the situation:

• Don’t fight back or become physically involved with the bully. Hold your temper. Becoming angry or violent will only make the situation worse.

• Explain to your child that bullies enjoy controlling their emotions and that if they react negatively, the bully feels very powerful. It is better to ignore taunts and threats. The bully will tire of getting no reaction and eventually chose another victim.

• Tell your child that if he gets into a physical confrontation with a bully that he may be putting himself in danger or serious bodily injury. Advise him to keep his distance and hang out with others so he will be safe. He should tell an adult about each incident for it to correct the situation.

• Explain to your child that the best thing for him to do is walk away from the bully. It’s also acceptable for him to make eye contact with the bully and tell him to stop. Bullies thrive on negative responses to their actions. When your child ignores him, he will not feel powerful.

• Tell your child to use humor when someone bullies him or to compliment the bully. Something like, “Your backpack is cool,” will send the bully for a loop and leave him standing with his mouth open. However, be sure that your child understands that he shouldn’t make fun of the bully or laugh at him. It will worsen the situation.

• Your child must know to tell his teacher, the principal or another adult in authority when someone bullies him so it can be dealt with swiftly and efficiently before the situation escalates.

• Talk to your child about the bullying incidents. Talking is an excellent way to address your child’s feelings in the open and quiet his fears and frustration.

• Ask your child to use the buddy system to keep himself safe. Ask the child to join social organizations and to broaden his friendships. Being in a group and interacting with peers will help him build his self-esteem.

The Parent or Guardian’s Role

If the bullying continues or worsens, don’t hesitate to get involved. Walk to school or the bus stop with young children. Doing this with growing children may make the taunts worse. Talk to the child’s teacher, principal, and school counselor. If these methods don’t bring results, then meet with the bully’s parents, along with your child’s teacher and the principal, at the school to have proper mediation. If, at this point, the bullying incidents continue, contact the local police department. Be sure to document all incidents of bullying. Include the date, time, place, and particulars of the incident.

Is Your Child the Bully?

Is your child the bully? If so, you may be shocked and disappointed. Remain calm and don’t overreact. Do not be on the defensive. It will only worsen the situation. Tell your child how frustrated you are. It may have a significant impact than if you become angry.

Bullying often occurs when a child is unhappy or insecure. Talk to your child and try to find out why they are experiencing these feelings. Ask your child the following questions if he is bullying his peers:

• Can you tell me how you feel about what’s happening at home and school?

• How do you feel about yourself as a person?

• Do you treat your peers well?

• Do you get along with your peers most of the time?

• Who are your friends?

• Is someone bullying you in some way?

• Why are you bullying your peers?

• What can we do together to help you stop bullying others?

Make an appointment with your child’s school counselor or principal to find out why they think your child has resorted to bullying. If you don’t get the answers you are looking for, ask your family physician to refer your child to a psychologist who specialized in aggressive childhood behavior.

If you suspect your child of being a bully, seek professional help. Bullying is a type of violence and aggression that will worsen as the child ages. It can lead to more antisocial, aggressive and violent behavior. Statistics state that one in four school bullies have a criminal record that haunts them throughout their lives. Teen bullies lose friends and are rejected by their peers, which causes the bully’s behavior to worsen. Bullies also tend to fail in adult relationships, both intimate and platonic.

Help Your Child Change

Problems with the family unit cause not all bullying. However, if your child is a bully, it’s time to take a long, hard look at the personal interaction that your child sees at home. Does a sibling tease him unmercifully? Is he called names and ridiculed by you, your spouse or a sibling? It seems like innocent fun may be hurting your child by you and the rest of the family modeling bullying behaviors.

Teasing, whether in earnest or fun can damage your child’s self-esteem and make him emotionally insecure. Your child may blame siblings or peers for his shortcomings. He must be made aware that he, and he alone, is responsible for his actions.

Always focus on your child’s behavior, never on his person. For instance, if he neglects a chore say, “I counted on your to do that. I’m extremely disappointed because you forgot.” Never say, “You are lazy. You can’t do anything right, can you?” Always criticize the behavior, not the child.

A child’s home should be a haven where he feels safe and secure and gets love, support, and respect. He should never be made to feel uncomfortable, unloved, unwanted or harshly criticized.

Encourage Your Child

Create a positive home atmosphere for your child to grow in and use these tips to help him stop bullying:

• Teach your child to treat all people with respect, kindness, and dignity.

• Set limits for your child and consistently maintain them.

• Reward appropriate behavior and punish that which is unacceptable.

• Talk to your child’s educators for advice on how to help your child change his behavior.

• Set realistic goals and see that your child reaches them. If he slips, reassure him and tell him you love him and encourage him to continue trying to change.

Help for Bullies and Their Victims

Whether your child is the bully or the victim, you may need professional help. Talk to your child’s educators, the school counselor, and your family physician. If necessary, get a referral to a mental health occupational.

If your child’s school doesn’t have an antiviolence program in place, talk to other parents, the parent-teacher association and the school board to have one put in place. Be sure to insist that your child’s school adopt a zero tolerance level for bullying, violence, and other antisocial behavior. You and only you can make a difference in your child’s life. By doing so, you may change the lives of other children as well. Take action now!

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This article details exactly what you should know and do before a tornado hits your area, during the event and the aftermath. Having the basic knowledge of tornadoes, how to prepare for them and the things to do during and after one hits can save your life!

Imagine having only a minute to take cover from a tornado! Are you prepared? Do you know what to do, where to go and how to protect yourself and your family? Does your family know how to contact you if you are separated? What about after the tornado strikes?

This article details what you should know and do before a tornado hits your area, during the event and the aftermath. Having the basic knowledge of tornadoes, how to prepare for them and the things to do during and after one hit can save your life!

Things to Do and Know Before a Tornado Strikes

Know the Signs of a Tornado

• Any strong rotation in the cloud base
• Whirling dust or debris on the ground
• Hail or heavy rain followed by a short period of calm
• A loud roar

It is essential to know the difference between a tornado watch and a tornado warning. A tornado watch means that weather conditions are favorable for a tornado to occur. A tornado warning alerts the public that a funnel cloud or tornado is spotted. In the event of a tornado warning, you should tune to your local television channel and watch the reports to see if the tornado is in your area or coming in your direction. Don’t wait until you spot the tornado! If your local news channel has issued a tornado warning, it’s time to head for safety.

Be Prepared

Planning and preparation ahead of time will ensure that you have the supplies and information you need to get through the storm. Tornadoes often give only a minutes warning. Preparation and practice will allow you to get to safety immediately.

Discuss a safety plan with your family. Be sure they know where to go in case of emergency weather conditions. Things to include in your plan are:

• Emergency communication plan — In case there are family members away from home when the tornado strikes, you should have an idea to contact an out of state relative to let them know where you are. Be sure everyone knows the number. Many times, out of state phone calls are easier to make than local ones during an emergency.
• Emergency supply kit — You need to assemble your emergency supply kit and rechecked at least once a year. You should include at least one flashlight with extra batteries, a portable radio, bottled water, good shoes for each family member if possible, and cash and credit cards. If space allows, a few canned goods and a can opener are a good idea. It’s essential that all family members know where the emergency supply kit is. Be sure to stress the importance of not trying to gather supplies when they should be seeking safety.
• Practice — Have a drill at least once a year to ensure everyone knows what to do and where to go during a tornado. Review your emergency communication plan and meeting place.
• Have a meeting place — If you become separated from your family, or there are family members who were not at home during the tornado, a predetermined meeting place will help in finding your loved ones.

What to Do and Where to Go During a Tornado

Some areas are safer than others during a tornado. Seconds count! The list below describes the most sheltered areas to go to various locations.

• In a house — If you are in a house when a tornado strikes the basement is the best and safest place to go. If there is not a basement, you should go to a room in the center of the house that has no windows, preferably under heavy furniture or in a bathtub. An inside hall or closet you can also use. Use cushions, pillows or if time permits, a mattress to cover yourself to prevent injury from flying debris.
• In a high rise — Go to the lowest level possible. Interior halls or stairwells offer the most protection. Get into a crouched position and cover your head (with your hands if you have nothing else). Do not use elevators during a tornado! If the electrical system goes out, you could stick in an elevator for hours.
• In a mobile home — Never stay in a mobile home. Many people feel safe in their mobile homes, but regardless of how the structure is secured, a tornado can twist a mobile home into shreds in seconds. If there is no shelter nearby, lay flat in a ditch or low lying area.
• In shopping centers, schools, hospitals, and factories — Go to the lowest level of the building or interior rooms. Stay away from glass and avoid auditoriums, cafeterias, or any place with a large spanned roof.
• In a car — Never try to outrun a tornado! Get out of your vehicle and take shelter in a ditch or low lying area. Don’t take cover under bridges!

Note: If your community has a storm shelter and conditions are not volatile yet, this would be the place to go. However, don’t attempt to go to the shelter if weather conditions are dangerous.

What to Do After a Tornado

After a tornado has hit there are several things you can do:

• Above all else, try to stay calm!
• Assess any first aid your family may need. Render assistance to neighbors if necessary.
• Stay away from power lines! Caution your children to be aware of possible downed power lines and the hazard they can cause if they go near them.
• Stay out of profoundly damaged buildings. They could collapse or have gas leaks.
• Remind everyone that they should not be lighting candles, matches or lighters. The risk of a gas leak is considerable.
• Although safety is the first concern, if your house or area is heavily damaged it may be a few days before things start to get back to normal. Remember to keep all your receipts so your insurance company can reimburse you.
• Go to the community shelter in your area. You will most likely need a place to stay, and your community center will have any necessary supplies, equipment, help, and information you will need.

Tornadoes can be devastating and life-altering disasters. Knowing how to prepare ahead of time and what to do during and after a tornado will ensure that you are taking the best measures to get through it safely.

The post What to Do Before, During and After a Tornado Strikes appeared first on GoogoBits.