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I’m no stranger to malfunctioning entertainment equipment on airplanes. Most of my flights are five-hour-long trips across country, and though I’d like to use that time to read or write, I’m usually not motivated to focus much in the confined space. I find myself preferring to listen to music or watch television when it’s available. On several occasions, my in-flight entertainment did not work right. Since I travel in economy coach class, the entertainment in almost always an additional cost. If the system is not working properly, I can opt to not buy the add-on service.

The situation is different for different travelers, apparently. If you are the royal family and you’re traveling in first class, the rules are different. Prince William and Kate Middleton experienced trouble with their entertainment system on a British Airways $8,000 per seat first-class flight from Los Angeles to London. Not that they need the money, British Airways was kind enough to refund the Royal Couple $300 for the inconvenience.

The refund is a bit excessive. $300 could pay for cable for at least six months in the United States. I’m not sure how the airline determined the couple’s suffering was worth this much, but I’d be happy with a refund of half that if my entertainment options malfunctioned for a ten-hour flight.

Is there any situation where a $300 refund for a malfunctioning entertainment system for as long as ten hours is warranted? Does it cost the airline more to deliver entertainment to first class than to economy? Even if every seat in first class were to have its own 3D HDTV, the refund is excessive. What would be an appropriate refund? On Continental, the price for in-flight entertainment is about $5 per seat. That seems like an appropriate refund amount.

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June 12, 2009 is the final day that full-power television stations will broadcast in an analog over-the-air signal. The date was originally set for February 17, but due to broadcasters who needed more time and congressmen who felt the public needed more time to understand the transition, the deadline was extended until next month.

This also has provided companies more time to create confusion in an effort to sell products and services.

Cable companies like Cablevision use the digital transition to try to convince holdouts still using antennas that the best way to avoid a problem is simply to sign up for a yearly contract, with a special “low-cost program.” They might be right. If you have cable or satellite service, you will be immune to the digital transition. Virtually all cable companies serve digital signals into homes now. But the low-cost program offered might provide you with fewer channels than you have now as a customer of free, over-the-air broadcast television.

Retailers use the digital transition as an excuse to convince consumers that it’s time to upgrade to a high-definition television. I routinely talk to people who are convinced that they need to buy a high-definition television in order to watch any television after the transition date. This was never true. A digital television is not the same as a high-definition television broadcast. You can watch digital television on your older cathode ray tube (CRT) television. You do not need to buy a new television, even if your old box has only an analog tuner.

At the very minimum, you will need to buy a digital converter box if your television has only an analog tuner. There are coupons available, two per family if you apply for the coupon before July 31, to help defray the cost of two converter boxes. If you buy a converter box, keep this in mind: Even after the digital transition deadline, some low-powered stations may continue broadcasting in analog only. If you want to receive these stations after the transition, you must buy a converter box which offers a feature called “pass-through,” which allows analog and digital signals to be sent to your television.

If you use antennas to receive analog television now, the same antennas will receive digital television. Digital signals are weaker, though, so you may find in order to receive digital reception that is comparable to your old analog reception, you’ll need an outdoor antenna.

There is more information from the FCC and the Department of Commerce runs the coupon program.

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In general, if you have to ask whether you need to report certain income to the IRS, the most likely answer is, “Yes.” Here are some examples, courtesy of MSN Money.

Q. I hosted a party to sell products to my friends (and use my social circle for multilevel marketing from some corporation), and the company’s representatives brought me gifts. Do I have to report this?

A. Yes.

If you host a party at which sales are made, any gift you receive for giving the party is a payment for helping a direct seller make sales. You must report it as income at its fair market value.

See Publication 463.

Q. My sugar-daddy (er… loving husband) died and I had to pay to collect the reward (er… life insurance). Do I have to report this?

A. Yes.

Life insurance proceeds paid to you because of the death of the insured person are not taxable unless the policy was turned over to you for a price. This is true even if the proceeds were paid under an accident or health insurance policy or an endowment contract.

Q. This year, I’ve been taking bribes to keep the caviar smuggling ring off the FBI radar. Do I have to report this?

A. Yes.

If you receive a bribe, include it in your income.

Q. I ran for office this year and used campaign contributions to pay for my second cousin’s bodyguards and my daughter’s wardrobe. Do I have to report this?

A. Yes.

These contributions are not income to a candidate unless they are diverted to his or her personal use. To be exempt from tax, the contributions must be spent for campaign purposes or kept in a fund for use in future campaigns… Excess campaign funds transferred to an office account must be included in the officeholder’s income on Form 1040 in the year transferred.

Q. Instead of buying a Hummer for $70,000, I paid $80,000 for the vehicle and received a $10,000 rebate. Do I have to report this?

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I originally posted this article in January 2008. As February 17, 2009 draws closer, I am still dismayed by the misinformation being spread by television manufacturers, cable operators, retail salespeople, and coworkers. Please pass this information to anyone who has the wrong idea about the switch to digital-only over-the-air broadcasts.

Whenever the subject turns to high definition television, I’ve always found a few people who are disappointed because they believe they need to sell their television and upgrade to high definition (HD) by February 17, 2009, they day the lights go out on analog broadcasts. This is a significant misconception, an incorrect assumption that is encouraged by electronics stores that use confusing and sometimes misleading terminology. Stores are encouraging people to upgrade to high definition televisions, inspiring fear that once February 17, 2009 rolls around, their current TVs will go dark, unable to receive signals from their cable or satellite company.

This is simply not true. The only changes will be to free over-the-air signals. For the most part, the only people who will be affected are those who use standard antennas to receive free television. Many people have cable or satellite boxes that are not affected by this change. The cable company will receive those local stations via the required digital signal and will send the signal to your house. The set-top cable or satellite box will use a digital tuner to receive signals and will send the video to your television over an analog or digital cable.

old televisionIf you subscribe to cable or satellite, this change will not affect you at all. If you use a cable box, the company has taken care or will take care of everything for you. If you receive cable service without a set-top box, you may need to contact the company.

If you are one of the many people across the country who watch only the television programs broadcast over the air, you have three options.

1. The first option is to buy a new standard definition (SD) television set. Almost all new televisions have digital tuners now, but check the specifications before you buy. Don’t buy a “monitor,” which has no tuner at all. You don’t need to buy an expensive HDTV if you want to save money.

2. The second option is to buy a special DTV converter box. These cost about $50, but households can request up to two $40 coupons.

3. The third option is to subscribe to a cable or satellite service. The most basic cable service costs less than $20 per month.

The biggest misconception I’ve been exposed to, particularly at work, is the idea that to receive any television at all after February 17, 2009, you will need a high definition television. This is simply not true. Please get the word out.

Image credit: ninjapoodles
DTV Transition Coalition
Digital Television from the FCC

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How I Could Find $10,000 Per Year if Necessary

by Flexo

Recently, JLP discovered that if he needed to, he could “find” an extra $13,000 per year by cutting back some of his discretionary expenses. By eliminating beer, soda, and a number of other unnecessary but nice expenditures, the savings can add up quickly. (I’m a bit surprised that JLP spends $50 per month on beer. ... Continue reading this article…

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Misconceptions About the Transition to Digital Television

by Flexo

Whenever the subject turns to high definition television, I’ve always found a few people who are disappointed because they believe they need to sell their television and upgrade to high definition by February 17, 2009, they day the lights go out on analog broadcasts. This is a significant misconception, an incorrect assumption that is encouraged ... Continue reading this article…

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Personal Income Statement, December 2007 (Net Income: $4,252)

by Flexo

Earlier today, I posted my year-end balance sheet for 2007. This is a companion to that report. Below, I list my expenses and income for December 2007 and the entire year, as well as some numbers from prior years for comparison. The balance report lists the state of my various accounts, while the income statement ... Continue reading this article…

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Ten Tips for the Holidays: Avoiding Credit Card Traps

by Flexo

It’s not unusual for even the most savvy credit-card-carrying consumer to fall into some of the most popular traps for spenders set by credit issuers. I write about using credit cards wisely, but unfortunately, many who don’t get penalized with interest and fees. Even those who always pay their credit card bill in full are ... Continue reading this article…

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