As a physician and an entrepreneur, I am an avid reader of your
magazine. Your articles are at once educational and entertaining.
Nichole L. Torres' well-written article "Face
Value" should not be construed as educational, however.
Tickle's views on the meanings of facial features of famous
people are not backed by strong scientific evidence. To base
business decisions on these features is the equivalent of
consulting one's horoscope and, as such, should be intended for
entertainment purposes only.
Erik Hoy
Plastic Surgery Resident
Pomona, New Jersey
Food for Thought
The article "In
Your Dreams" by Geoff Williams was very interesting and
makes an important point. It is essential to realize that your
intuition is available and always sending information. However, you
must also be in a receptive state of mind in order to act on
million-dollar ideas when they surface. Many people find that one
passing thought, properly captured, has changed their entire
life's direction.
Evelyn Grazini
Author of Directed Dreaming: Success from the
Subconscious
Seattle
For Your Consideration
I found your article entitled "Get
the Word Out," by Catherine Seda, useful, but it left out
one major press-release distribution player: Marketwire.
Content Continues Below
I also evaluated PR Newswire and Business Wire and selected
Marketwire after a comprehensive review. I urge you to take a look
at the comparison of the wires.
I save, on average, 40 percent to 50 percent on each release,
and I found Marketwire's reach and effectiveness to be as good
as--and in most cases, much better than--the ones mentioned in the
article. What has continued to amaze me, and is a real
differentiator, is their proactive and positive customer
service.
Steve Kayser
Director of PR
Cincom
Watch Your Claims
I read your June column on the new IRS home-office sale
guidelines ("Personal
Finance") and believe that the information you imparted is
incorrect (or, at least, incomplete.) On December 24, 2002, the IRS
issued guidelines making it clear that even those who had claimed a
home office in prior years would qualify for the $250,000/$500,000
capital gain exemption when they sold their homes. However, home
offices that were separate structures from the main home would not
qualify. For the majority of home offices, however, the guidelines
specified that the only effect of selling a home in which a home
office had previously been claimed was that the depreciation
claimed (or allowed) would need to be recaptured.
While home prices have increased so much in many parts of the
country that the 1031 home office exchange you mentioned might be
necessary/desirable (because the $250,000/$500,000 exemption
won't be sufficient), the majority of homeowners who have
claimed a home office and are now selling their homes will be able
to manage without the complexity of a 1031 exchange and will be
able to ignore (not just defer) the gain on their homes (with the
exception of paying tax on the depreciation claimed).
As a tax preparer who specializes in small business, I am often
asked whether it's worth claiming the home office despite
problems when the home gets sold. I always assure these business
owners that it is. However, your article might make these taxpayers
reluctant to claim a home office.
The February 2005 guideline change will be helpful to some
business owners, but it is neither simpler nor better than the
guidelines issued in December 2002, which are applicable to many
more taxpayers.
Jan Zobel
Author of Minding Her Own Business: The Self-Employed
Woman's
Essential Guide to Taxes and Financial Records
Scott Bernard Nelson responds: Jan correctly points out that
recapturing home-office depreciation won't be significant in
dollar terms for many. But it could be for some, even for those
with offices inside the home (not external structures). The
February 2005 IRS guidance gives people a new option. The recapture
of home office depreciation can now be deferred until later, if
necessary, via a 1031 exchange. It won't be for everyone, but
those with a home office should know about the
alternatives.
Correction
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