Mycroft’s Blog

A Gem Among Internet Businesses

Every once in a while you run across a business on the internet that truly understands and takes to heart customer service. If you ever need something for your pond, be it a small backyard pond or a lake this is the place to go….. http://www.stillpondfarm.com/ .  The owner is Linda Fields and is one of the nicest and most knowledgeable people you will ever deal with. I had placed an order for a product that is normally available but temporarily would not be available for several weeks. Not only did she let me know about the situation right away but called the manufacturer and using her special magic managed to get the item I needed right away.

I see a lot of negatives about businesses online so I thought Linda earned a special public thank you. Once again for all your pond needs check out   http://www.stillpondfarm.com/. Linda will provide you with the kind of customer service you deserve.

Partnership Agreement

The partnership agreement includes the original agreement and any modifications. The modifications must be agreed to by all partners or adopted in any other manner provided by the partnership agreement. The agreement or modifications can be oral or written.

Partners can modify the partnership agreement for a particular tax year after the close of the year but not later than the date for filing the partnership return for that year. This filing date does not include any extension of time.

If the partnership agreement or any modification is silent on any matter, the provisions of local law are treated as part of the agreement.

Terminating a Partnership

A partnership terminates when one of the following events takes place.

All its operations are discontinued and no part of any business, financial operation, or venture is continued by any of its partners in a partnership.

At least 50% of the total interest in partnership capital and profits is sold or exchanged within a 12-month period, including a sale or exchange to another partner.

Unlike other partnerships, an electing large partnership does not terminate on the sale or exchange of 50% or more of the partnership interests within a 12-month period.

See section 1.708-1(b) of the regulations for more information on the termination of a partnership. For special rules that apply to a merger, consolidation, or division of a partnership, see sections 1.708-1(c) and 1.708-1(d) of the regulations.

Date of termination.

The partnership’s tax year ends on the date of termination. For the event described in (1), earlier, the date of termination is the date the partnership completes the winding up of its affairs. For the event described in (2), earlier, the date of termination is the date of the sale or exchange of a partnership interest that, by itself or together with other sales or exchanges in the preceding 12 months, transfers an interest of 50% or more in both capital and profits.

Short period return.

If a partnership is terminated before the end of the tax year, Form 1065 must be filed for the short period, which is the period from the beginning of the tax year through the date of termination. The return is due the 15th day of the fourth month following the date of termination. See Partnership Return (Form 1065), later, for information about filing Form 1065.

Conversion of partnership into limited liability company (LLC).   The conversion of a partnership into an LLC classified as a partnership for federal tax purposes does not terminate the partnership. The conversion is not a sale, exchange, or liquidation of any partnership interest, the partnership’s tax year does not close, and the LLC can continue to use the partnership’s taxpayer identification number.

However, the conversion may change some of the partners’ bases in their partnership interests if the partnership has recourse liabilities that become nonrecourse liabilities. Because the partners share recourse and nonrecourse liabilities differently, their bases must be adjusted to reflect the new sharing ratios. If a decrease in a partner’s share of liabilities exceeds the partner’s basis, he or she must recognize gain on the excess. For more information, see Effect of Partnership Liabilities under Basis of Partner’s Interest, later.

The same rules apply if an LLC classified as a partnership is converted into a partnership.

Cats and Ponds

Somehow people don’t think of cats and ponds as being particularly compatible. Our two cats have had many varied experiences several of which have been comical. Both cats are black. One is named Ghost because he has this unnerving habit of appearing beside, behind or in front of you with no warning. The other cat is named Tequila. He got his name from the drink because he has a little bite to him.

When Ghost first discovered the Koi he was bound and determined to catch one. This didn’t last long when he found they lived in something extremely wet called water. That discovery cooled his interest for a while. Then he took to hanging his tail over the edge of the pond just above the water and swishing it back and forth. This lasted until Junior (a 24 inch Koi) decided he had had enough of this intruder. Junior used a swish of his tail to send a spray of water up and over the edge on the pond. Ghost shot up and away from the pond’s edge. He now seems to have more respect for the fish.

Ghost also has an interesting relationship with the waterfalls between the ponds. Being naturally curious he wants to get to the far side of the pond.  Because access to one side of the pond is blocked by a privacy fence the only avenue open is to cross one of the waterfalls. Ghost will very carefully pick his way across the top layer of rocks which are dry. Once on the other side there is enough border area to walk along the edge of the pond. On his return trip he refuses to walk across the rocks again but instead takes a flying leap to the other side of the waterfall.

Tequila is another story altogether. He is relatively new to the ponds. He also has not yet had the Koi attempt to splash him. So far he has tried to eat floating fish stick food from the pond. He has also tentatively tested the floating heart pads to see if they will hold his weight. One night he was chasing dragonflies, one of his favorite pastimes. He was charging along not paying enough attention to where he was going. As he bounded up onto the wooden seating area he suddenly realized water lay just beyond its edge. He put on his brakes, claws raking across the wood. Somehow he managed to stop but since then has been more careful about where he is.

Apparently Junior has decided that Tequila is not a threat. The other evening I had feed the fish in the patio area when the phone rang. I left him sitting there at the edge of the pond watching the fish eat. When I came back Tequila was still at the edge of the pond. Junior was right below Tequila with his mouth open. Apparently Junior had decided that since the cat was not a threat Tequila could feed him. Tequila had no idea what to make of the situation.

Watching my cats interact with the fish and ponds in general has given many pleasant hours.

What Is Self-Employment Tax?

Self-employment tax (SE tax) is a social security and Medicare tax primarily for individuals who work for themselves. It is similar to the social security and Medicare taxes withheld from the pay of most wage earners.

You figure SE tax yourself using Schedule SE (Form 1040). Social security and Medicare taxes of most wage earners are figured by their employers.  Also you can deduct half of your SE tax in figuring your adjusted gross income. Wage earners cannot deduct social security and Medicare taxes.

SE tax rate.
The self-employment tax rate is 15.3%. The rate consists of two parts: 12.4% for social security (old-age, survivors, and disability insurance) and 2.9% for Medicare (hospital insurance).

Maximum earnings subject to SE tax.
Only the first $94,200 of your combined wages, tips, and net earnings in 2006 is subject to any combination of the 12.4% social security part of SE tax, social security tax, or railroad retirement (tier 1) tax.

All your combined wages, tips, and net earnings in 2006 are subject to any combination of the 2.9% Medicare part of SE tax, social security tax, or railroad retirement (tier 1) tax.

Fiscal year filer. If you use a tax year other than the calendar year, you must use the tax rate and maximum earnings limit in effect at the beginning of your tax year. Even if the tax rate or maximum earnings limit changes during your tax year, continue to use the same rate and limit throughout your tax year.

Self-employment tax deduction. You can deduct half of your SE tax in figuring your adjusted gross income.  This deduction only affects your income tax.  It does not affect either your net earnings from self-employment or your SE tax.

How to Pay Self-Employment Tax

To pay SE tax, you must have a social security number (SSN) or an individual taxpayer identification number (ITIN).  This section explains how to:

* Obtain an SSN or ITIN
* Pay your SE tax using estimated tax.

Obtaining a Social Security Number. If you never had an SSN, apply for one using Form SS-5, Application for a Social Security Card.  You can get this form at any Social Security office or by calling (800) 772-1213. Download the form from www.ssa.gov website

Obtaining an Individual Taxpayer Identification Number. The IRS will issue you an ITIN if you are a nonresident or resident alien and you do not have and are not eligible to get an SSN.  To apply for an ITIN , file Form W-7, Application for IRS Individual Taxpayer Identification Number.

Estimated Taxes

Federal income tax is a pay-as-you-go tax. You must pay the tax as you earn or receive income during the year. You generally have to make estimated tax payments if you expect to owe tax, including SE tax, of $1,000 or more when you file your return. There are two ways to pay as you go: withholding and estimated taxes.  If you are a self-employed individual and do not have income tax withheld, you must make estimated tax payments.

Who Must Pay Self-Employment Tax?

You must pay SE tax and file Schedule SE (Form 1040) if either of the following applies.

* Your net earnings from self-employment (excluding church employee income ) were $400 or more.
* You had church employee income of $108.28 or more.

Your net earnings from self-employment are based on your earnings subject to SE tax. Most earnings from self-employment are subject to SE tax.  Some earnings from employment (certain earnings that are not subject to social security and Medicare taxes) are subject to SE tax.

If you have earnings subject to SE tax, use Schedule SE to figure your net earnings form self-employment .  Before you figure your net earnings, you generally need to figure your total earnings subject to SE tax.

Note:  The SE tax rules apply no matter how old you are and even if you are already receiving social Security or Medicare.

Try this to banish that cloud following you

Everyone regardless of their job at times gets stuck in a rut. Being stuck in a rut can really dampen enthusiasm and creativity.So what can you do? The answer is very simple. Try something you don’t usually try.

You are normally a planner. Before going out on a photo shoot you plan every detail well in advance. You know how long it will take you to get to the chosen location. You have made several visits to find the best time of day for lighting your subject. You know the lens you will use and whether you need a tripod or flash. You have planned for every contingency you can reasonably expect and then some.

You usually are a spur of the moment type shooter. You enjoy wandering around with no set path or schedule. You usually bring a couple of cameras with different lenses. Sometimes you have a tripod available sometimes you improvise.

So for one day whichever category you generally fall into,pick the other for the day. Planners you can choose the length of time you are going to spend but that’s it. Spur of the moment group you can put locations in a hat and randomly pull out one but that’s it for today.

So off you go. Yes I know it will be a shock to your system, some more than others, but remember this is good. We are trying to banish the cloud following you around.

Finally we are all a hybrid but go with what is not your first choice, what you do daily. There is no intent to bash one group or praise the other it’s just a fact of life. So for the day go forth and try something different.

At the end of the day curse me for such an idiotic idea or praise me for sheer brilliance, but you are the winner for accepting the challenge and carrying through.

Plants and Ponds

One decision you will make is whether you want a plant water garden only or if you want a combination fish/plant pond.

A plant only water garden can be as small as the size of an old barrel cut in half. Molded plastic barrels and tubs are also available.  This size will limit to some extent the selection of plants that will thrive in your pond. However, there are still many plants that both flowering and non-flowering from which to choose.

If you should find you have a problem with insects a small feeder goldfish (inexpensive gold fish raised to be fed to larger fish) can be added. The fish will take care of the insect larvae.

All plants help filter water by removing nutrients for their own use.  Some give more back to the water garden than others.

You will want to include several oxygenating plants.  Examples include: Anacharis, Caboma, Dwarf Sagittarius and Water Mollify. These plants compete with algae (cause of that green pea color) for nutrients and carbon dioxide. They release oxygen directly into the water hence their name oxygenating plants. These plants remain submerged below the water surface.

Lotus are relatives of the water lily.  Once established they can produce striking blooms. There are varieties available which are suitable for the range of pond sizes.  Lotus leaves float on the pond’s surface and the flowers rise up to five feet above the pond surface.

Water Lilies, while not producing as spectacular a bloom as Lotus, come in dozens of varieties. You can probably find one that has the color flowers you want and will work in the size pond you choose.
Floating hearts are a sort of miniature Water Lilly with small short lived yellow flowers. These grow like crazy. You will need to prune them back some during the summer.

Pickerel Rush is a striking plant. They have an elongated heart shaped leaf sitting on a two or three foot stalk.  It also produces purple, blue or white flowers well into fall.  This is a nice border or screen plant.

All the above plants are best grown in a container.  Most will spread rapidly if their root system is not somewhat confined.  There are at least two varieties of plants that float on the water surface and trail their roots below them but not anchored. One is the Water Hyacinth, another is Water Lettuce.   The Water Hyacinth is especially good at filtering the pond water. These plant as well as others can become a menace if allowed to escape into natural creeks and ponds.

There are dozens if not hundreds of other plants that you could use in your pond. One resource book that I found useful was Garden Pools & Fountains by Ortho Books.  Lots of info can be found online as well.

Travel, Meals, and Entertainment

This section briefly explains the kinds of travel and entertainment expenses you can deduct on Schedule C or C-EZ.

When Are Entertainment Expenses Deductible?

(Note. The following is a summary of the rules for deducting entertainment expenses. For more details about these rules, see Publication 463.)

General rule

You can deduct ordinary and necessary expenses to entertain a client, customer, or employee if the expenses meet the directly-related test or the associated test.

Definitions

* Entertainment includes any activity generally considered to provide entertainment, amusement, or recreation, and includes meals provided to a customer or client.

* An ordinary expense is one that is common and accepted in your field of business, trade, or profession.

* A necessary expense is one that is helpful and appropriate, although not necessarily required, for your business.

Tests to be met

Directly-related test

* Entertainment took place in a clear business setting, or

* Main purpose of entertainment was the active conduct of business, and

You did engage in business with the person during the entertainment period, and

You had more than a general expectation of getting income or some other specific business benefit

Associated test

* Entertainment is associated with your trade or business, and

* Entertainment directly precedes or follows a substantial business discussion.

Other rules

* You cannot deduct the cost of your meal as an entertainment expense if you are claiming the meal as a travel expense.

* You cannot deduct expenses that are lavish or extravagant under the circumstances.

* You generally can deduct only 50% of your unreimbursed entertainment expenses.

Travel expenses.

These are the ordinary and necessary expenses of traveling away from home for your business. You are traveling away from home if both the following conditions are met.

1. Your duties require you to be away from the general area of your tax home (defined later) substantially longer than an ordinary day’s work.

2. You need to get sleep or rest to meet the demands of your work while away from home.

Generally, your tax home is your regular place of business, regardless of where you maintain your family home. It includes the entire city or general area in which your business is located. See Publication 463 for more information.

The following is a brief summary of the expenses you can deduct.

Transportation.

You can deduct the cost of travel by airplane, train, bus, or car between your home and your business destination.

Taxi, commuter bus, and limousine.

You can deduct fares for these and other types of transportation between the airport or station and your hotel, or between the hotel and your work location away from home.

Baggage and shipping.

You can deduct the cost of sending baggage and sample or display material between your regular and temporary work locations.

Car or truck.

You can deduct the costs of operating and maintaining your vehicle when traveling away from home on business. You can deduct actual expenses or the standard mileage rate (discussed earlier under Car and Truck Expenses), as well as business-related tolls and parking. If you rent a car while away from home on business, you can deduct only the business-use portion of the expenses.

Meals and lodging.

You can deduct the cost of meals and lodging if your business trip is overnight or long enough that you need to stop for sleep or rest to properly perform your duties. In most cases, you can deduct only 50% of your meal expenses.

Cleaning.

You can deduct the costs of dry cleaning and laundry while on your business trip.

Telephone.

You can deduct the cost of business calls while on your business trip, including business communication by fax machine or other communication devices.

Tips.

You can deduct the tips you pay for any expense in this list.

More information.   For more information about travel expenses, see Publication 463, Travel, Entertainment, Gift, and Car Expenses.

Entertainment expenses.

You may be able to deduct business-related entertainment expenses for entertaining a client, customer, or employee. In most cases, you can deduct only 50% of these expenses.

The following are examples of entertainment expenses.

* Entertaining guests at nightclubs, athletic clubs, theaters, or sporting events.

* Providing meals, a hotel suite, or a car to business customers or their families.

To be deductible, the expenses must meet the rules listed in Table 8-1. For details about these rules, see Publication 463.

Reimbursing your employees for expenses.

You generally can deduct the amount you reimburse your employees for travel and entertainment expenses. The reimbursement you deduct and the manner in which you deduct it depend in part on whether you reimburse the expenses under an accountable plan or a nonaccountable plan. For details, see chapter 13 in Publication 535. That chapter explains accountable and nonaccountable plans and tells you whether to report the reimbursement on your employee’s Form W-2, Wage and Tax Statement.

Back To Basics

It doesn’t matter what your business may be everyone needs customers to be successful. So the question is how do you get those customers?

Probably the most important thing to realize is that it is going to take your time (measured in 10+ hour days) or money.  In reality of course it is a combination of both. You also need to be consistent. It does no good to promote/market your business like crazy for a month and then take the next two off. So make your goals realistic for the long term.

There are many different ways to market your business. The following are some of the more popular and is not meant to best all inclusive.

Safe Lists
These are basically email clubs. You agree to
RECEIVE email from other members for the right to send them email. So you are promoting your business to others and they are promoting their businesses to you. One drawback to this method is that you only agree to receive email not that your will actually read it. As with all the different methods some people say it is worthless, while others swear buy it.

PTC/PTR
Pay to Click and Pay to Read is another method to market your business. This type of program has marketers who pay to run their ads. Members are paid to click on the ad and view the ad for a certain number of seconds, usually 30 seconds. With this method you have a much better chance of actually having your ad seen.

Traffic Exchanges
With these programs you earn credits by viewing other member’s ads. You can then use those credits to show your ad to other members.

Live Presentation
The best way to market your business/product is with a live presentation. This method allows you to immediately answer any questions your customers may have. You can do this in two ways. You can rent/buy your own voice/video conference room. You will drive customers to your room a set times to give them your presentation. I use this conference room called Hot Conference

The other way is to join a program that will assist you with putting together your presentation and help drive customers to your presentations. I useWIN Network
This is meant only to give you some direction to begin your own search and testing to see which works best for you. Happy marketing!

http://5625.yourwinoffice.com/

http://www.hotconference.com/members/mycroft

The Little Things

As with most jobs in life it is the little things that can make the difference between success and failure. And sometimes they are just make things easier.  Photography has its own unique group of these items.

One of the most debated is the skylight/uv filter. This filter helps eliminate some of the uv blue. It also protects your lens from the odd flying piece of gravel or mini-duct storm. Purists argue that anything you put in front of the lens is going to degrade the picture to some extent. Whether the photographer or ordinary person can actually see the difference is debatable. At this point in photography I am personally willing to give up just a bit to protect my lenses. One day when I can easily afford to replace a $1000 lens perhaps I will drop the skylight/uv filter.

Another thing that as a photographer you will probably learn to both love and hate is the tripod. Using a tripod properly will always result in a sharper photo. Please read that again because it does not say you SHOULD use a tripod for every shot. However it is true that a decent tripod used properly will result in a sharper image. The only problem is THE BOAST. I’m sure you have hear it, ” I can handhold my camera using a 2 second exposure and get tack sharp photos.” It is possible to get lucky but most of the time at a reasonable size the shots are not going to be sharp.

The biggest barrier to tripod use is it is a pain to carry everywhere with you. I would try to find suitable support onsite and while sometimes I found some, it was never in quite he write place. I began dragging err carrying a tripod with me and found it was well worth the effort when I began sorting through the images at the end of the day.

Finally one thing often overlooked is the camera strap. You would think that after spending hundreds or thousands of dollars on a camera body and lens the manufacturers could include a good quality strap. While they have gotten better over the years, one of your first additions should be a good strap. After a day of carrying your camera, your shoulder and back muscles will appreciate a nice cushioned non-slip camera strap.

Digging Your Pond

You have the outline of your pond and the edges are level. Dig out the inside of your pond outline. You want to dig down about 9″ making it level. Now make another outline 9-12 inches from the original outline. Dig out this outline until you have a total depth of 24-36 inches. Although vinyl liners are relatively tough it is a good idea to installed a under liner. This protects the liner from any sharp stones roots etc.

To install the under liner stretch it across the pond and push it to the bottom of the deepest part. You get into the pond at this point and smooth out the under liner tucking it against the walls and step of the pond. Next comes the liner.

Stretch the liner across the pond as you did with the under liner. Place small rocks on the edges of the liner to prevent the edges from sliding into the pond. Smooth the liner as best you can, it is impossible to remove every wrinkle.

Fill the pond with water. While the pond is filling continue to smooth out the liners wrinkles. Once the pond is filled do not cut off excess liner. Instead fold the liner over your edge boards and back under them. In a free-form pond just fold the liner under itself until you have about 6 inches from the pond edge. Use whatever pond edging you have chosen to cover the fold liner along the edges of the pond.

Once the pond has finished filling treat the water with a dechlorinize. Get some plants to put on the shelves and after at least 24 hours get several “feeder” goldfish. These are inexpensive fish to test the water quality. If they seem happy and are eating well after a week your pond is ready for Koi or other fish.

Next time let’s get some water recalculating.