| Show E4 THE WALL STREET JOURNAL Love & Money 4 By LT 11 BUSINESS Tribuiw SLIt Sunday Fcbman I 21104 Eil Encoro Jeff D Opdyke By Kelly Greene - Kids and Chores: All Work and No Pay? Af reply my azi) I ask?-son to help old year the table for dinner His Can I have tW9 doilarsi— 'A rr Parr II you pay for too much didn't really want to do the work even for money That was partly t because they had outside jobs But ‘ J it was mainly because I had undermined the expectation that they I ' ''': : must work in the house I had set it s ‘ up so these jobs were optional— wroe ' Iv( No' they could turn them down if they ? : 7:11 1 wanted to So I ended up hasing to I ' tk4: '''' f reibAanie 24 1 f do all the stuff as an adult that I — -e— I hated as a kid because my kids NN didn't want to do it" (11 1 -: at 10k Basically my friend says he c:f--14it learned as I'm learning now j 7"1°P! --: — ' - ii A ''' : that I should have set a much ' ''' 't ' minimum expectation for higher "' ' 4' ' ' '' '''' j 4 being a family member" ' ol CI He's now applying that lesson '' : i 4 OL4‘1116'' 34 ' 11 to his preteen daughter "She's ex' ''''''' 'e Att e ' "s 7t 41 z 0 to do much more around ' C 'I '3 pected ' ti like cleaning or helping ' Ar the house ifeovti'l :'-t' 1 ' t t sz:if 4 I- s' :e31 2 1 1'14 cook or keeping her room Lactost- 14: :v4VI straight" he says "She's too My friend at the office grew up young still but I won't be paying tgant usually around first or Wfor folding clothes or cutting the orld grade—roughly thP stage similarly responsible for working outside after school every day He vhen kids begin to understand the grass or raking leaves' had to cut the grass and weed in significam e of money and the frusthe spring and summer rake trations of not having enough to Speaking of leavesover the fall I was raking the blanket of leaves in the fall and shovel snow buy what Mom and Dad won't in the winter foliage that covers our yard every My friend Grace went through Thirty minutes not this with her year when my son came wanderpretty much every day—after which he could play with his long ago ing up from the tool shed with a rake I had bought him friends He went through a phase she he says In retrospect last year at Home Depot he says when he was asking to get "If I help you rake Dad can I learned a lot about outdoor work— paid to do anything around the have a dollar?" about planting shrubs for inhousP" Grace generally told him Now I knew his efforts would stance and building walks—that "no" be short-liveand that more than has served him well as an adult One day Grace told her son to with his own house But what likely I'd have to rake over his pick up his toys When he asked tracks But to have your son willstuck with him even more was how what the assignment was worth much he disliked it Grace realized she'd had enough ingly volunteer to help is a heart"It was part of my job in the with the constant request for warming feeling and a bonding exhouse and I pretty much hated perience money for simple chores around "Sure buddy" most of it" my friend says "It was the house I was right he lasted about 10 "I put a stop to that impertitorture because all I wanted to do minutes before he decided to play was play baseball But I had to get nence right then and there" in the leaves instead of rake them the chores done first" Grace says "I told him that if I Still I paid him his dollar and So my friend did what many paid him to pick up his toys then thanked him for taking the initiahe needs to pay me for his food his people do: He went the other directive to help around the house tion when he had his own kids and clothes his toys rent etc" The Then I took the opportunity to rarely asked them to do anything message sunk in he stowed his And he looks back on raising his lay some groundwork: "You know toys without seeking remuneraone day you're going to be old son and daughter now in their late tion teens and says "I think I made a Now when I was a kid I didn't enough where Mommy and I are mistake" My get paid for many things going to expect you to rake the leaves without getting paid—and The problem he says is that grandfather would tell me to cut he "set the bar too low on the rethat day is getting closer" the grass so I cut the grass My "OK" he replied "Maybe we quired things We expected them grandmother would ask me to to do stuff like clear the table But can start when I'm your age" straighten up the disaster in my bedroom so I cleaned my room anything above and beyond I offered to pay" Jeff D Opdyke covers personal They didn't offer money as an enIn the end he says "that backfinance for The Wall Street Journal ticement the work was simply fired When they got older they Email: lovernoneyewsicom I hP Several wanted a qoarter helpirg fold some clothes And when my wife Amy asked him to rfmple(e a chore he had already agreed to do he tred to renegotiate so hP coald get a dollar for it We didn't pay turn for iriy of it and generally don t for most chores As I've told him he has reached an age here he has no choice but to pitch in and contribute to the family's upkeep Still Amy and I are trying to formulate a philosophy on what we will and won't pay for when it comes to housework It ISt1 t On one hand there s no reason he should be paid for chores like setting the table or cleanirg his room Then it0111 some chores P deserve extra rewards—and pay ing for them also an help us en couragp our son's entrepreneurial spirit But the distinction between paying and nonpaying chores is both hard hr us to make and hard for him to understand " 11r"11111-- 4 t 7:77'S 1 t 1: 77 '': '' '1002rmosal r —- ' ' 1' ' -- 4" :4' '''ir i - s it1t 'i7 i ''' f q-- J--- seven-year-ol- kids Ask Dow ymijLLEARN with Your The Personal Journal bk article is truly a great find LI The secret of how to speak to 1711 a human after exhausting :F: V the menu choices has been revealed—and not one moment too soon Thanks!' — ' —HRC Topeka KS Look to The Wall Street Journal for neW8 and information to help you meet your personal goals The Personal Journal section provides practical guidance you can use to manage your life outside the ewe Start your Journal subscription today Call ' Vt4 a don't report that gift any- and neither does the lucky recipient—as long as your gift to that person truly is a gift and A Pi JOCIKL (!e Fr r To Ticket ('tilde Changes In Searth of the Operator—Firms Spent Billions This Year to - Make It Hard To Find F- One how to Reach ling V3-'- a Real Person IN You where not a form of payment for something However you also can't deduct that gift either The rules for deducting gifts are very strict I realize that if you give away as much as $11000 to a needy child or a friend that's certainly very generous But you can only deduct gifts to qualified organizations such as schools religious groups or charities Moreover even if you do give money to a qualified organization you can't deduct that gift if you take the 'standard" deduction as nearly two out of three taxpayers do That's a flat amount based on your filing status You can deduct gifts to qualified By JANE SPENCER THE ANNALS of they outrank ATM fees and plaque: organizations only if you itemize your deductions which means listing them on Schedule A automated phone lines where the hunt for a live operator seems to get tougher by the day The reason is simple economics: Despite greater automation US companies spent a record S150 billion last year to maintain call centers Should a question that has gripped scientists in recent years and the answer could have a big effect on both the way the scientists do their work and the general public's attitude toward growing older On Jan 22 two prominent researchers argued for and against the idea of redefining aging as a disease rather than a natural condition in a fascinating debate broadcast through Sage Crossroads net a Web initiative by the Alliance for Aging Research a Washington advocacy group and the American Association for the Advancement of Science which publishes Science magazine (You can see and hear a replay on the Web site under "Webcasts") The arguments boil down to this: If aging is a disease then people are justified in attributing at least some of their aches and pains simply to getting older Otherwise the traditional view of most aging experts applies: Aging isn't a disease but it increases our susceptibility to disease (One interesting note: It has been illegal to die of old age since 1951 when the federal government deleted it from the official list of causes of death) S1400 Possible Boost for Research Those pushing to tag aging as a disease argue that it's the best way to spur research "If aging is a disease you try to cure it" says Arthur Kaplan chairman of the medical-ethic- s department at the University of Pennsylvania in Philadelphia If aging isn't a disease you don't try to intervene So if we want research to change aging you've got to get it into the disease -- category" After all most research dollars are targeted toward curing specific diseases such as cancer or Alzheimer's "If you show up at Congress and say 'Aging is kind of a natural thing and it would be fun to know more about it'" it would be tough to get funding Dr Kaplan contends Harry Moody director of the Institute for Human Values in Aging in New York disagrees "I don't e What are the basic rules for deducting a home office? BS Huntington Beach Calif First you generally need to make sure your home office is used exclusively and regularly for business The IRS offers the follow- Q A ing example: Suppose you're a lawyer and use your den at home to write legal briefs and prepare clients' tax returns Your family also uses the den for recreation Because the den isn't used exclusively for your work you can't claim the deduction on your tax return The area used for business can be a room or some other 'separately identifiable" space the IRS says It doesn't need to be marked a permanent partition There are many other key rules to consider For example the home office typically must be your 'princior a place pal place of business where you meet or deal with patients clients or customers in the normal course of your work Or it can be in a separate structure that isn't attached directly to your home and that you use for work If you're an employee your home office must be for your employer's convenience not yours This is a tricky Issue for many people especially with the increase In telecommuting The IRS says that whether the business use of your home is for your employer's convenience depends on "all the facts and circum off by a year for the typical household Here's a breakdown: C Poi4 Ihm Jonos ê Compony Inc All nolo noonloi LI°IaN" 0 I I- ezWg 40mo0skd06 stances See Publication 587 for more details If you can jump over all the qualifying hurdles you may be eligible to deduct a significant part of your expenses such as insurance depreciation repairs and utilities for that part of your home Some people who work at home fear claiming the home-offic- deduction e inevitably an IRS audit Not so an IRS spokesman told me One New Jersey tax adviser I know has deducted his home office for de-cades and says he has never been challenged on this subject by the IRS Just be sure you understand all the fine print and keep good records Including photographs of your office in case the IRS chat- lenges you will lead to ri What happens on your taxes If your realized capital losses for a year exceed your realized capital gains? Can I deduct net losses? A Yes ?LK New York City within certain limits If your losses exceed your if you have no gains at all) you typically can deduct as much as $3000 of your net losses from your wages and other ordinary Income each year If you're married and filing separately the limit is gains (or $1500 a year This news often comes as a pleasant surprise to readers (including this one who is a friend and assume you can deduct your capital losses only to the extent of your capital gains Naturally these rules apply only to -- realized- losses on stocks and other securities says Martin Nissenbaum of Ernst & Young Paper losses don't count no matter how painful they may be What if your realized net losses turn out to be even larger than the annual limit? In that case you carry 11 Clothes washer & dryer 10 Upting 7 Over the unused portion of the loss to the next year and treat It as though you had incurred It during that next year says Mr Nissenbaum If part of your loss still remains carry it to future years he says Refrigerator 6 Tom Dishwasher 2 VCR DVD 2 Computer and monitor 2 - I encoreewsjcom Watet heater Some: Eneter Star i Kelly Greene writes for 'Encore" The Wall Street Journal's quarterly guide to retirement Write to her at 15 TV 341)290 anti-agin- g 45 If you are not completely satisfied write 'cancel' on the invoice and owe nothing Or receive an additional 13 weeks for only $59 That's the regular price of a suhscriptionyour first 4 weeks are FREE! Business And the Business of Life Already a group of doctors working largely with patients trying to stave off wrinkles and boost their energy claim to have quick fixes largely through alternative medicine Dr Moody argues that any definition of aging as a disease would help such practitioners bolster the claims for their shots and supplements despite the fact that there's little scientific evidence that such products work But Dr Kaplan counters that the move would put the industry "out of business" because it would raise the bar for having to prove results through clinical trials "We'd be able to say 'Before you make a claim show us the evidence that it works'" Dr Kaplan says Other Offer good for new subarribers in the etmtinental OS only Salm tax may apply THE WALL STREET (JOURNAL Shots and Supplements Heating & cooling Trial Subscription! ek anti-agin- g colleague of mine here In New York) Some Investors erroneously The Wall Street Journal Page D1 for Your FREE g baby-boom- Stat of tho Week Energy bills total think we need to redefine aging as a disease to get money for research" he says He drew an analogy between aging and childbirth arguing that both are natural processes that need to be studied Neither is thought of as a disease because they are both conditions that everyone experiences And calling aging a disease could suggest that there's some sort of cure which is a long shot at the moment considering that scientists still have a lot of basic work to do before they understand how the actual aging process works Dr Moody adds A decade-lonattempt by the National Institute on Aging which ended in 199S failed to pinpoint any markers to track the rate at which a person is aging biologically rather than chronologically And without those basic benchmarks it would be difficult to tell definitively whether a drug or other medical treatment is slowing the aging process in an indhidual Another point of disagreement: Would redefining aging as a disease be a boon or bust for the conmeditroversial field of cine? By Tom Herman have learned that a person make a gift of up to S11000 to another person without filing a special form with the Internal Revenue Service But I can't find anything on the IRS Web site that tells me where the giver lists this gift on their tax return (should the giver simply list it as an Itemized deduction?) or where the recipient reports it TN Leander Texas THE WALL STREET JOURNL PEILS9NAL Jones Quimay Trial FREE4-Wee- k 44 3 -- 7 r Jo ' - - aging be considered a AMIN ) begin to assume you should pay for everything—and they'll figure they have thP power to reject the work if they think the price is too low But if you don't pay for anything you get nothing hat resent ment Thus we're learning that when it conies to kids and their chores managing expectations is as important as the chore itself I Just as there is a wide disparity in allowance programs amorg par ents moms and dads tai kle this issue in numerous ways Some get in the hahit early on of paying for just about any chore and the pattern sticks as the kids grow older (utters pay for no chores expectuur that as a !WTI-heof the family a kid is required to perform certain tasks And many parents like me and Amy are somewhere in between trying to navigate a fuzzy line between expectation and encouragement The conirnon thmominator is that all parents face this at some What Does Aging Make You 111? Herman's Tax Report ap- - ' pears Thursdays In The Wan Street: Journal Send your questions about finances investments or taxes tor: ashdowJonessunday03ewsteom (include your name address and a daytime phone number) Questions may be edited we regret that we cannot answer every letter t |
