All About Financial Matters

My Son’s Bank Account Is Zero

My son has just turned the age whereby he is able to have his own bank account without my trustee signature. It is an exciting time for him and, as he is getting increasing amount of money from various sources [including me] he has become more aware of the power and use of money.

However, his new style of entrepreneurship in claiming a bank account for himself has not exactly turned out how we had planned. As I write this article, his bank account remains at the level of zero. I asked him why he has not put his money into his bank account. He has various answers and reasons; but the underlying, and most powerful one, is that if he puts his money into his bank account then he cannot look at it or feel it and it therefore doesn’t feel quite as real.

Strangely enough, I have begun to understand this concept; and I believe it is one that we, as adults, also use in a modified form. I’m sure most of us have used a credit card at some stage or other including for large purchases. Paying several hundred dollars via credit card doesn’t seem like we are spending or using money. But paying the same amount over the counter using hard cash feels very different.

And then of course there are complications of interest payments on deposits and also the safety and security of money in the bank rather than in a cupboard in some bedroom. As yet his check account remains at zero; but I’m working on methods by which we can help him save his money more productively.

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2005 Ford Escape Hybrid Certified For Clean-Fuel Deduction

If you are environmentally conscious and purchase a 2005 Ford Escape Hybrid vehicle that combines a gasoline-powered engine with alternative power methods, you are in line for a nice tax deduction.

Ostensibly, the government uses clean power tax deductions as a method to promote the use of vehicles that are less harmful to the environment. The clean-fuel tax deduction is based on the incremental cost of using a vehicle model that combines traditional gasoline-powered engines with electric motors. The deduction is only available if the manufacturer has submitted vehicle specifications that the IRS has agreed to qualify the vehicle as a “Clean-Fuel Vehicle”. Once this has occurred, the IRS then certifies the vehicle as one that qualifies an owner for a tax deduction.

On December 13, 2004, the IRS certified the 2005 Ford Escape Hybrid as a “Clean-Fuel Vehicle” for the first time. If you purchased the Ford Escape in 2004 or 2005, you may claim a tax deduction of $2,000. You must comply with two requirements before claiming the deduction. Under current law, you must:

1. Take the deduction in the year the vehicle was originally purchased,and

2. Be the original owner, of the vehicle.

Importantly, you do not have to itemize your deductions to take advantage of the Clean-Fuel deduction. If you are using the basic 1040 form for filing your taxes, simply write “clean fuel” on line 33 and take the deduction. Make sure you review the instructions for form 1040 to correctly claim the deduction. The process is exceedingly simple.

It should be noted that the Clean-Fuel Vehicle deduction is a one-time deduction. Further, the deduction is only available on your federal tax return, not your state filing. Since the deduction will affect your adjusted gross income, however, you should see an additional saving on your state tax return since your adjusted gross income will be reduced. If you have already filed taxes for the year in which you purchased a clean-fuel vehicle, you should consider amending your tax returns to claim the deduction.

Richard A. Chapo is with businesstaxrecovery.com businesstaxrecovery.com - recovery of business taxes through tax help and tax relief. Visit businesstaxrecovery.com/articles businesstaxrecovery.com/articles to read more business tax articles.