Countdown to Digital TV (DTV) Transition

If you have an analog TV, you need to be ready by February next year so that you have proper equipment to convert the digital broadcast signal. The conversion of broadcast television from analog to digital is scheduled for completion on February 17 of 2009.

For broadcasters, the intervening 12 months would be a challenging time to make sure that they have done all that they can to prepare for the Digital TV (DTV) transition and that consumers are aware of it and are doing all that they need to do to make certain that they will still able to be receive their television signals.

Electronic stores have already started selling new digital converter boxes, which will let viewers with stand-alone analog sets that rely on over the air transmissions, receive digital signals next year. The government is offering a $40 rebate coupon to help defray the cost of buying the box.

For more details, visit Federal Communications Commission's website on Digital TV transition or for comments or questions pertaining to the DTV transition, e-mail DTVinfo@fcc.gov.

To know more about the TV convertor box and to get the rebate coupon, visit the TV Converter Box website or call the toll-free number 1-800-DTV-2009.

iPod Shuffle for $49

Apple today slashed the price of the 1GB iPod Shuffle from $79 to $49, making it the most affordable iPod ever.

The 37.9% price cut is even steeper than the $200 (33%) cut in iPhone prices that Apple announced last September. The company took advantage of rapidly falling memory prices to offer its customers the lowest entry point in the iPod’s six year history.

Apple also announced that a new, 2GB Shuffle will be available later this month for $69.

Tax 2007: Stricter Charity Donation Rule

While filing your year 2007 tax return, you need to be careful about a new twist in the clause for charity donations.

In previous years, charitable givers didn't need receipts for cash donations under $250, while claiming a deduction for such donations. For 2007 tax return, however, you need substantiation for any amount that you give. Unless you possess a receipt, you can no longer take a deduction for those contributions.

A cancelled check or bank record, or a receipt from the charity will do, as long as the name of the organization, the date and amount of the donation are noted. Taxpayers don't need to file those receipts with their return, but they need to have them on hand in case the IRS decides to have an audit on your return.

Also, note that the IRS now requires any donated clothing or household items donated to be in "good" or better condition to qualify as deductible. If the IRS questions your claim, you'll need to prove the condition and the value of your donation. You may consider photographing your items before donating them, and keep all receipts.

Also, keep in mind another new rule introduced in 2006 that still applies: If you claim donated property worth in excess of $5,000, you need a qualified appraisal.

Related webpages:
IRS publications on charitable donations
IRS publication on Qualified Appraisal

Permanent Insurance

Our today's topic is Permanent Insurance which includes whole life, universal life and variable universal life policies. You may consider these policies, if you need protection for life but also want to build cash value on a tax-deferred basis for a variety of financial goals. The Whole life policy have been the most popular form of permanent insurance but universal life and variable universal life have increased in popularity in recent years because of the increased flexibility they offer to policyholders.

If you want permanent insurance, but have many financial commitments that require flexibility in meeting premium payments--such as mortgage payments, paying down debts or funding a child's college education--universal life (UL) may be for you.

With universal life, you control the amount and frequency of your premium payments and can choose between two death benefits options (within certain limits). The first, the level death benefit option, simply matches the policy face amount (the amount stated in the policy that's paid in case of death). The second, the increasing death benifit option, equals the face amount plus any accumulated policy cash values.

Policyholders can take loans against these cash values at any time. You may also take withdrawals (district from loans), generally after the policy's first year. Obviously, since cash values accumulate tax deferred, earnings, if any, become taxable only upon withdrawal. (Remember, though, that any withdrawals and/or unpaid loans will reduce the death benefits.) These features make Universal Life attractive for the long-term accumulation of assets which can then be used for different financial goals.

Now, we discuss a special kind of permanent life insurance: the Survivorship life insurance. Survivor Life policies pay a death benefit only after both insureds die. These policies are typically purchased by couples who have sizable assets and want to maximize the amount they leave to heirs or charities by allowing the beneficiaries to use the death proceeds to pay inheritance taxes.

Survivorship universal life (SUL) and survivor variable universal life(SVUL) simply combine the features of survivorship life with universal life and variable life in one policy. Because a survivorship life policy pays benefits only after both insureds die, it's usually a less expensive option than buying two seperate policies.