Click to return to SIOL ARCHIVES page

            
STRATEGIC ISSUES...ONLINE 
For week of June 26, 2006, Issue #267
Featured Articles:
1.  If You Own a Hybrid, Don't Miss Out on Your Tax Credit
2.  Tech Tip Weekly:  To Hyphenate (or Not) in MS Word
3.  Compliance Calendar
 
If you would like to have further information on any of these articles, let us know.  We would appreciate receiving your comments and/or suggestions, anytime!
acarroll@pmcpa.com
 
 
1.  If You Own a Hybrid, Don't Miss Out on Your Tax Credit
 
Is your next auto purchase going to be a hybrid? If so, you might want to put your order in soon.  That's because the tax credit you'll receive for buying a hybrid phases out after each manufacturer sells a certain number of vehicles.  Based on recent sales figures, the tax credit for at least one popular model could be cut in half later this year.
 
With rising gas prices, hybrid cars have become popular.  Hybrids have both an electric motor and a small gasoline engine.  Their battery is recharged by the gas engine and by energy captured when braking.  As a result, they achieve better gas mileage than a regular automobile.
 
If you buy a new hybrid car, you're eligible for a tax credit.  A credit directly offsets taxes you owe, dollar for dollar.  In recent months, the IRS has approved the certification of various makes and models of hybrid vehicles, with credits ranging from $650 to $3,150.
 
But Congress put a limit on the total tax credits available for each manufacturer.  Once a company sells 60,000 hybrids, the full credit is available for only one more calendar quarter.  After that, the credit amount for that manufacturer's cars reduces to 50% for the next two quarters, then to 25%, and eventually to zero.
 
For example, based on recent sales, Toyota/Lexus could reach the 60,000 limit before midyear.  If that happens, you would receive only 50% or less of the approved credit if you buy one of their vehicles after September 30th this year.  Similar reductions will apply to other manufacturers after they hit their sales limits.  That's why buying sooner rather than later could be a smart tax move.
 
2.  Tech Tip Weekly: To Hyphenate (or Not) in MS Word
 
The first thing you should know about hyphenating words in a MS Word document is that you may not need to do it.  Text that hasn't been hyphenated is easier to read.  you may want to hyphenate text only when it's trapped in columns or in other narrow places, or when you want a very formal-looking document.
 
Don't insert a hyphen by simply pressing the hyphen key, because the hyphen will stay there even if the word appears in the middle of a line and doesn't need to be broken in half.  Instead, when a big gap appears in the right margin and a word is crying out to by hyphenated, put the cursor where the hyphen needs to go and press Ctrl+hyphen.  This way, you tell MS Word to make the hyphen appear only if the word breaks at the end of a line. To remove a manual hyphen, press the Show/Hide Paragraph Marks button so that you can see it; then backspace over it.
 
3.  Compliance Calendar
 
June 28
-Employers deposit Social Security, Medicare and withheld income tax for June 21, 22, and 23.
 
Thank you for subscribing to the weekly edition of Strategic Issues...Online.  If you wish to unsubscribe to this newsletter, please Reply to this e-mail and type "unsubscribe" in the subject line and your name will be removed.  If you know of someone else who would benefit from this newsletter, please feel free to forward this on to them or send us their e-mail address and we will be happy to add them to our mailing list. This newsletter has been compiled by Prangley Marks, LLP for our clients and other interested persons.  The information presented may or may not apply to your facts and circumstances and should not be acted upon without professional advice.  
 ***Privacy Policy***
Prangley Marks, LLP will not sell, distribute, or otherwise misuse any email addresses received or collected for the purpose of this newsletter.
 
In order to comply with requirements imposed by the IRS which may apply to the Strategic Issues...Online as distributed or as re-circulated by our members, please be advised of the following:
THE ABOVE ADVICE WAS NOT INTENDED OR WRITTEN TO BE USED, AND IT CANNOT BE USED, BY YOU FOR THE PURPOSES OF AVOIDING ANY PENALTY THAT MAY BE IMPOSED BY THE INTERNAL REVENUE SERVICE.
Prangley Marks, LLP
Accountants & Consultants
"The Way We Figure, We Are The Only CPA Firm You Will Ever Need"
11th Floor Bridgewater Place, 333 Bridge Street, NW, Grand Rapids, MI  49504-5356
Phone#:  616-774-9004, Fax#:  616-774-9081