August 11, 2008

News Briefs

New home hair drug test detects prescription drugs, usage frequency

A new home-based hair follicle drug test kit called HairConfirm™ Prescription can detect drug and prescription use as well as usage frequency for up to 90 days, equipping parents with a valuable new tool for combating substance abuse. Developed by Biotech Company Confirm BioSciences, the test overcomes the limitations of two or three-day saliva or urine screenings that enable users to escape detection by avoiding drug use for a short period. It is also the first home hair test to report the amount of each chemical detected as well as whether the results indicate low, medium or high usage.

“I can tell you first hand how easy it is for families to dismiss the visible signs of drug abuse in a loved one,” said Leigh Lehmann, a HairConfirm customer. “But numbers don’t lie, and the detailed information provided by this product will help bring people together to deal with it. I wish I had done this years ago!”

The advantages of HairConfirm over urine-based, at-home drug testing kits include:

- Longer window of detection – months instead of 48-72 hours.

- Cost-effective and time-saving – one hair test vs. 18 urine samples for three-month profile.

- 5-10 times more sensitive test than urinalysis.

- Easier to collect, store and transport.

- More dignified method to use.

- A full drug history report for 12 different types of illegal and prescription drugs. Data can differentiate between recreational user and addictive user.

Abuse of prescription drugs to get high has become increasingly prevalent among teens and young adults according to the National Drug Policy. The organization also reports that Pain relievers such as OxyContin and Vicodin are the most commonly abused prescription drugs by teens. Past year misuse of prescription pain killers abuse now ranks second—only behind marijuana—as the nation’s most prevalent illegal drug problem
Teens Today research from Students Against Destructive Decisions and Liberty Mutual Group has suggested that parents are the number one deterrent to a teen’s decision to use drugs and prescription drugs. Studies by that group have shown that the average age of first drug use is 13; more than one-third of teens have used drugs, including almost one in six middle school students and 30 percent of their high school counterparts reporting marijuana use; and 13 percent of high school students report using drugs such as cocaine, crack or ecstasy.

HairConfirm Prescription is now available at Amazon, CVS.com and drugstore.com and other resellers listed at www.hairconfirm.com. The kit costs $89.99, including a collection kit, prepaid return envelope, lab fee, report and free counseling hotline. The kit will soon be available on the shelves at Walgreens.

Commercial real estate wins big in 2008 Economic Stimulus Act

Most people are aware of the 2008 Economic Stimulus Act.  That’s the legislation designed to jump-start the economy by giving most taxpayers a one-time $600 rebate.

But if you’re a business owner or real estate investor and that’s all you know about the 2008 Economic Stimulus Act, you may be missing out on hundreds of thousands of dollars in tax savings.  But you need to act quickly, because when 2008 ends, the extra tax savings expire with it.  And you can’t buy, close, and occupy new offices overnight.

Double your deductions
The 2008 Economic Stimulus Act does two things that can virtually pay you to invest in business property right now:

- It doubles the IRC Section 179 deduction from $125,000 to a maximum of $250,000 across all qualified business assets with useful lives of 20 years or less. This deduction must be taken before bonus depreciation, up to the $250,000 limit, and it phases out once a business has purchased in excess of $800,000 of qualifying Section 179 assets during the year.  But that’s a tremendous increase in what you can write off—if you purchase in 2008.

- After the Section 179 deduction has been applied, the new legislation brings back bonus depreciation—allowing businesses to write off 50 percent of the remaining amount on qualified new assets with recovery periods of 20 years or less.

Together, these write-offs can total hundreds of thousands of dollars in investment that you can recover immediately.

Cost segregation accelerates depreciation
The key to all this is a cost segregation report—a well-kept secret in the IRS tax code. Established through documented court proceedings with the IRS over the past decade, the cost segregation accounting method breaks a real estate transaction down into not only land and buildings, but also into tangible personal property and land improvements such as carpeting, cabinets, wall coverings, and paving and concrete—which are assumed to be used to support business activities or create the proper ambiance for business, rather than to make the building habitable or functional.  These assets can be written off over shorter periods of 5 to 15 years—greatly accelerating your ability to put your money back into your pocket.

The bottom line
Time is running out. The 2008 Economic Stimulus Act expires at year-end, meaning you must identify a property and act now to take advantage of the tax savings. To learn more, read the white paper at the following link http://www.borelli-inv.com/pdf/2008_Stimulus_Act.pdf that provides additional information about what the 2008 Economic Stimulus Act can do for you.

If you’d like to discuss your specific situation contact Larry Bengiveno with Borelli Investment Company at (408) 453-4700, or e-mail larry@borelli.com.

IRS increases mileage deductions

The Internal Revenue Service [IRS] announced an increase in the optional standard mileage rates for the final six months of 2008. Taxpayers may use the optional standard rates to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.

The rate will increase to 58.5 cents a mile for all business miles driven from July 1, 2008, through Dec. 31, 2008. This is an increase of eight cents from the 50.5 cent rate in effect for the first six months of 2008, as set forth in Rev. Proc. 2007-70.

In recognition of recent gasoline price increases, the IRS made this special adjustment for the final months of 2008. The IRS normally updates the mileage rates once a year in the fall for the next calendar year.

“Rising gas prices are having a major impact on individual Americans. Given the increase in prices, the IRS is adjusting the standard mileage rates to better reflect the real cost of operating an automobile,” said IRS Commissioner Doug Shulman. “We want the reimbursement rate to be fair to taxpayers.”

While gasoline is a significant factor in the mileage figure, other items enter into the calculation of mileage rates, such as depreciation and insurance and other fixed and variable costs.

The optional business standard mileage rate is used to compute the deductible costs of operating an automobile for business use in lieu of tracking actual costs. This rate is also used as a benchmark by the federal government and many businesses to reimburse their employees for mileage.

The new six-month rate for computing deductible medical or moving expenses will also increase by eight cents to 27 cents a mile, up from 19 cents for the first six months of 2008. The rate for providing services for charitable organizations is set by statute, not the IRS, and remains at 14 cents a mile.

The new rates are contained in Announcement 2008-63 on the optional standard mileage rates.

Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.

Mileage Rate Changes
         
Purpose: Business
Rates through 6/30/08: 50.5
Rates 7/1 through 12/31/08: 58.5

Purpose: Medical/Moving
Rates through 6/30/08: 19
Rates 7/1 through 12/31/08: 27

Purpose: Charitable
Rates through 6/30/08: 14
Rates 7/1 through 12/31/08: 14

Congratulations American Culinary Federation

The American Culinary Federation [ACF] recently honored Campbell’s Professional Culinary Institute with a special presidential award at the 2008 ACF National Convention in Las Vegas. The awards are given at the discretion of ACF President John Kinsella for recognition of their unique contributions to the culinary industry within the past year including support of ACF certification and membership for culinary students and the impact on their future in the industry.
 
The ACF, established in 1929, is the premier professional organization for culinarians in North America. With more than 21,500 members spanning 230 chapters nationwide, ACF is the culinary leader in offering educational resources, training, apprenticeship and accreditation. In addition, ACF operates the most comprehensive certification program for chefs in the United States. ACF is home to ACF Culinary Team USA, the official representative for the United States in major international culinary competitions. For more information, visit www.acfchefs.org.