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I mentioned a few months ago with my year-end balance sheet that I would soon be changing the way I report my finances publicly. These monthly reports have been a relatively consistent part of Consumerism Commentary since I founded this website in July 2003. One of the original purposes of this website was to help myself take control of my finances and learn more about managing my own money.

After a while, though, the net worth reports, which include not much more than an accounting of my bank account and credit card balances, became less meaningful. At the same time, I stopped myself from reporting my income figures due to the complexities with dealing with a private transaction. I’ve decided to turn back to basics with the monthly reporting in order to focus once again on reducing my expenses.

The report below includes the last six months of my expenses after taxes and not including a few items like charitable contributions and business expenses. It will provide a good baseline for moving forward and determining where I can reduce my expenses and where I can compromise and allow myself more leeway. I’ve already done a good job of eliminating unnecessary expenses in order for me to enjoy certain things without stretching my budget, so reducing expenses might not be as important right now as monitoring my spending to ensure I’m not being wasteful. Continue reading to see my expenses.

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It’s not often that a young, female star of music, movie, and television can avoid financial scrutiny. Tales of financial woe tend to be much juicier, anyway. It’s not difficult to remember the Britney Spears train wreck. She couldn’t handle earning more than $700,000 a month. At least her antics kept her in the news.

I’ve been recently enamored with Zooey Deschanel. She’s a fine actor and a fine singer; I own her three albums on vinyl — including a Christmas album, something of a stretch for me. But today I learned something that increased my respect for her: she spends responsibly. According to the financial disclosure she included when she filed for divorce last year, obtained by TMZ, she keeps her spending under control.

Zooey DeschanelThat’s not to say she doesn’t spend extravagantly. According to the disclosure, she pays $4,000 per month for a mortgage ($3,000 of which is interest on the loan), $1,000 per month on groceries, $1,000 on entertainment, and $2,600 on clothes including laundry. In all, Zooey spends more than $27,000 a month. That’s not exactly frugal living.

That doesn’t tell the full story. The actor also disclosed that she earns $95,000 per month. She owns her own businesses:

  • Oscar Jaffe Productions, a loan-out company. This is a type of organization used in entertainment so that when a film or television producer hires an actor like Zooey, the production company pays the actor as a corporation, not as an employee. Since the actor wouldn’t be an employee, it reduces the tax liability for the company producing the show or movie (all other things being equal).
  • She & Him LLC, a music licensing company. Again, with a corporation owning the licensing rights to her music, there might be some tax advantages above and beyond what might be the case if Zooey were to own the licensing rights herself.

From the earnings of these two businesses, she passes $95,000 to herself as income. All of Zooey’s expenses, including debt, add up to less than 30% of her pre-tax income. That’s not bad — but it’s not too hard to accomplish when you have $95,000 per month to work with.

Photo: breezy421
TMZ [pdf] via Well Heeled Blog

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Kodak Files for Bankruptcy

This article was written by in Investing. 6 comments.

There were rumors and predictions for a while, but today it’s official. Kodak, the company that revolutionized film photography and adopted digital photography early, has declared bankruptcy. The company has been struggling since the 1980s; I’m surprised it survived this long without filing Chapter 11.

Kodak PortraThat’s what the company chose to do today, with debt adding up to $6.75 billion.

I’ve been a fan of photography for many years, and I’ve begun taking this interest more seriously in the past few. I’ve taken a number of eight-week photography classes offered by a local arts organization, and the classes have been helping me improve my art. They have also inspired an interest in old-fashioned film photography. While I still use digital cameras (mostly a Canon 1D3, purchased used), I also use a Mamiya RZ67 Pro II medium format film camera, also purchased used. Just in the last month, I decided it would be more frugal and more fun to develop black-and-white film myself instead of spending the money to a professional lab nearby.

Despite owning all the equipment I have — in addition to various cameras I have studio equipment like lights and backdrops — my struggle is to find the time to focus on photography.

While Kodak will continue to operate during the company’s Chapter 11 reorganization, the future of some of the best Kodak products is uncertain. There is no great alternative for photographers who like using Ektar and Portra color film and Tri-X black-and-white film; competitors’ products, like those produced by Fuji or Ilford are different. Now could be a great time to stock up on Kodak film; if it becomes difficult to purchase, the value could increase. Film has a short shelf-life, but many photographers are fine with purchasing expired film.

CNN

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The Worst Celebrity Tax Problems

This article was written by in Taxes. 10 comments.

It’s with a tinge of schadenfreude that people are fascinated with the failures and foibles of famous celebrities. Every year, the IRS chases people who evade or underpay federal income tax, and actors and popular figures in the media, who often don’t manage their own finances, make the news.

The latest is Lindsay Lohan. You may remember her from such films as Mean Girls, Freaky Friday, and Herbie Fully Loaded. TMZ has discovered that the IRS has obtained against Lindsay for almost $100,000, representing tax she didn’t pay for her income in 2009. Like many busy people, Lindsay employs an accountant to handle her finances, and she says the oversight will be handled immediately.

Lindsay LohanThe sum Lindsay owes is small compared to the problems other celebrities have had with the IRS.

Wesley Snipes failed to pay up to $17 million to the IRS for his income taxes, not including penalties and interest. After his trial and a failed appeal, he was sentenced to prison for three years.

Nicolas Cage also blamed his accountant for his failure to pay a $14 million tax bill in 2010; even more recently, Nic failed to pay over $600,000 for a gift tax.

Pamela Anderson owed $2 million to the IRS and to the state of California.

Annie Leibovitz isn’t a movie star, but she is at the top of the list of famous modern photographers. She owed $2.1 million in back taxes, and pledged to sell her ownership of her photography to pay the bills.

Martha Stewart owed $220,000 to New York for taxes, but she believed she didn’t need to pay this tax because she didn’t spend time in that state.

Celebrities often have tax situations that differ from people who aren’t performers or professional athletes. They need to handle state tax returns for every state in which they’ve earned income each year, just like all taxpayers, but in any given year, performers may have earned income in a large number of states. Celebrities will almost always be too busy to handle their own tax returns, so they trust accountants to handle the paperwork and the payments.

On the other hand, it’s safe to say that some famous individual who owe the government money for failure to pay their tax bills are aware of the situation and are trying to skirt the law as much as possible, until they are forced to pay.

Photo: Rafael Amado Deras
TMZ via Don’t Mess With Taxes, New York Times, UPI, Back Taxes Help

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The $4 Million Photograph: How Do You Value Art?

by Flexo

Last week, a photograph by Andreas Gurksy, Rhein II, was sold at auction for $4,338,500 to an anonymous buyer. The record-breaking sale allowed Gursky to reclaim fame as the artist whose work has claimed the highest price paid for a photograph. This auction was a secondary market sale. As in most art auctions commanding high ... Continue reading this article…

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The Best Financial Advice I’ve Ever Received

by Flexo

People frequently ask me to share the best piece of financial advice I’ve ever received. Most recently, this was a common theme at the Financial Blogger Conference in Chicago. One company in attendance, creditcards.com, filmed and edited a video of various personal finance bloggers sharing their best piece of financial advice. I think it’s important ... Continue reading this article…

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Boost Your Human Capital: Explore Beyond Your Industry

by Flexo
The box outside of which you should think

If there’s anything to take away from an extended period of unemployment, it’s that human capital can mean the difference between receiving a good job offer and remaining unemployed. There are many facets of human capital, and as your human capital increases, so does your marketability. There are many ways you can gain an edge, ... Continue reading this article…

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Best Holiday Toys 2011

by Flexo

Christmas and Hanukkah are right around the corner, and if you have children, they might already be looking forward to the holiday season. Gift-giving is a big part of the holiday season, as it has been for a long time. Commercialism is the most popular American religion as we approach the end of the year. ... Continue reading this article…

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