Dear Perplexed,

The taxation of your investment income depends on several factors, including the type of investment income you have (e.g., tax exempt, ordinary, capital gain, or tax deferred).

If you have municipal bonds, the interest they generate is typically exempt from federal taxation and state taxation in the state the bonds are issued. The interest may or may not be subject to state income tax in the state of your residence, if different from the state of issue. U.S. Treasury bills and certain types of government savings bonds generate interest that is typically subject to federal tax, but not state tax.

Of course, not all investments are tax exempt. Investment income is generated by either the income it produces during the ownership of the investment (e.g., interest, dividends, or rent) or the gain it produces when the investment is sold at an appreciated value. Investment income such as interest and rent is considered ordinary income and will generally be taxed according to your ordinary income tax rate. If you have investment income from the sale of a capital asset that is held for more than one year (e.g., stock or investment property), the income is generally considered capital gain and is taxed at long-term capital gains rates. Qualifying dividends are also taxed at long-term capital gains rates (dividends that don't qualify for long-term capital gains rates are taxed at ordinary income tax rates).

Finally, you should know that tax-deferred investments (such as 401(k) plans) produce earnings and gains that are not taxed until later, when the money is distributed to you.

For more information, consult a tax professional.

Note: Starting in 2013, a new 3.8 percent Medicare tax will also be imposed on interest, dividends, capital gains and other investment income for individuals making more than $200,000 ($250,000, if married filing jointly).

Hal

This information is for illustrative and discussion purposes only. Morgan Keegan does not provide legal or tax advice. You need to contact your legal and tax advisors for additional information and advice before making any investment decisions. Morgan Keegan & Company, Inc. Member FINRA, SIPC. Securities and insurance products are not FDIC insured, not a deposit, not an obligation of or guaranteed by Regions Bank, it affiliates, or any government agency and may lose value. This advertisement was prepared for Hal Lynde using material by Broadridge Investor Communication Solutions, Inc. Copyright 2011.

To submit your question, you may contact Hal Lynde at hal.lynde@morgankeegan.com or at 713-840-3640.

For more financial information, go to Hal.lynde.mkadvisor.com.

Dear Canine,

I think you sound lonely and overworked. There is no doubt that a dog would provide the companionship that you crave. But there are two main considerations to leaving a dog alone for extended periods of time: bathroom needs and anxiety.

It is unreasonable to expect that your dog can be left alone for 8 to 10 hours without relieving itself. Since you cannot easily go home for lunch, you could consider training your dog to relieve itself on a pad. Dog Pads that retail for approximately $40 for 100ct box work well for small dogs such as Chihuahuas, Hairless dogs or miniature breeds. You have to put up with the smell and clean-up time but it’s certainly a much more humane solution than having your dog “hold it” for hours on end.

Anxiety is another matter. Dogs need social interaction. Lonely dogs will bark, chew and generally “act up” to work out their anxiety. One solution might be to adopt two small dogs instead of one. But are you ready for that kind of commitment?

And is it fair to expect your pets to take care of your loneliness? Dogs soak up your emotions. They will be happy if you are happy. Before adopting, consider volunteering at one of your local pet shelters. You might meet some interesting people and make a few friends.

- Marie

Do you have a pet question for Marie? Send her your pet ponderings at askmarie@thegreensheet.com.

Option #1: Washing It Yourself

The greatest upside to washing your car yourself is that you can be as thorough as you want. You can get inside your hub caps, apply wax and use whatever other supplements you want.

Depending on the size of your car, a simple wash could take you anywhere between an hour and a half and three hours. Should you decide to wax, the job will take an extra 45 minutes to an hour.

All in all, you can easily spend about an afternoon washing your car.

And if you haven’t washed your car in YEARS, expect it to take even longer.

In addition to the time you spend, you will also have to use water, soap, wax, rags, sponges, brushes, etc., all of which = $$$.

Option #2: Going to a Car Wash

Car washes range widely in price and quality. You can take your car through a fast drive-through for five bucks or less or to a detail shop with car wash packages (ranging from $10 to $50). Car wash packages can potentially include a whole range of potential amenities, such as tire shine, interior vacuuming, and rain protection.

Of course, the more stuff you include, the longer you have to wait and the more you have to pay. If your car wash happens to be super nice, or you can catch a ride with a friend, the wait time won’t be so bad. But anywhere you might go to wait out your car wash—coffeehouses, restaurants-- might cost money, too.

The Verdict

It depends. Every car owner’s situation is different, so there is no best way to get the job done. If you live in an apartment, for example, you may not have access to a hose, taking away the option of washing your car yourself. If you don’t have someone to pick you up and there’s nothing to do nearby, you could wind up incredibly bored. Then again, if you wash it yourself and don’t like scrubbing metal in the sun, you might prefer the boredom. Really, whether you decide to wash your car yourself or take it to a shop is a personal preference.

is a personal preference. Crunch your budget, figure out your preferences and consider all of the available options when it comes to keeping your car clean.

With all that experience, I now consider myself an expert on moving.

And since it’s May is a major moving month (at least according to the amount of moving ads that have been placed at TheGreensheet.com), I thought now would be the perfect time to share my wisdom with y’all.

Presented here are seven tips to make your move a thousand times easier.

1. Stock Up On Supplies

Get packing supplies. Moving boxes, bubble wrap, newspapers, packing foam, packing tape – anything and everything you can gather ahead of time will help when it’s time to begin packing.

2. Start Early

The earlier you begin packing, the more organized and stress-free you’ll be. Besides, you never know when unforeseen events might push back your moving schedule. Starting early will allow for potential errors.

3. Mark Your Boxes

Mark all boxes with the contents and location in your new home. You can lose a lot of time digging into boxes to figure out what they contain, and where they go. When my Type A personality comes out, I stick a colored sticker on each box, symbolizing each room with a color (red for kitchen, orange for living room, etc.). It really saves you time when you are dropping boxes off.

4. Put Trash Where It Belongs

De-clutter and purge unwanted items. The more items you can donate, give away or sell, the lighter your load will be – saving you packing time, loading time and ultimately – money.

5. Plan for Pets

Pets are not your average item. If you have pets, make plan well ahead of time as to where to keep them during the move – and how you’ll transport them to your new home.

6. File for a Change of Address

Don’t forget to file your change of address with the Post Office. You have enough to do without worrying that your banking statements are going to your old address.

7. Consider Hiring a Mover

If you don’t have the time to do everything yourself, TheGreensheet.com offers some great movers. Consider finding extra help.

Dear Whitney,

First and foremost, Congratulations!

Following the birth of your child, you may feel that both you and your spouse need to work to meet household expenses and maintain your current lifestyle. However, you may discover that one of you can stay home without seriously affecting your net income. Though you would have to do without a second income, you need to factor in what you'd save:

1. Child-care costs:

The cost per child for a day-care facility, nursery school, or nanny

2. Commuting costs:

Gasoline, wear and tear on your car, tolls, and parking

3. Clothing:

Work clothes and dry cleaning

4. Restaurant and take-out food:

Prepared dinners you purchase because you have no time to cook

5. Lunches out:

You have more time to prepare your own

6. House cleaning and gardening:

Hired help to clean the house and mow the lawn

7. Taxes:

With only one salary, you may move into a lower tax bracket

Now, consider the adverse effects of becoming a single-income household. The most obvious, of course, is a reduced family income. You should also consider what effect a leave of absence will have on the stay-at-home spouse's career and your family's retirement plans. You may both be at a point in your careers where you are earning high salaries. Leaving your job now may mean having to start over lower on the career ladder. And if one of you leaves work, you may miss the opportunity to fully fund your employer-sponsored retirement plan. Further, with only one income, you are more vulnerable in the event of an economic downturn. Finally, the stay-at-home spouse may lose the sense of accomplishment and community one gets from working outside the home.

You should balance all the issues, both pro and con. And remember, although it may make sense for both of you to continue working, some nonfinancial considerations, such as the opportunity to raise and supervise your child in your own home, may outweigh your financial concerns.

Hal

This information is for illustrative and discussion purposes only. Raymond James|Morgan Keegan does not provide legal or tax advice. You need to contact your legal and tax advisors for additional information and advice before making any investment decisions. Morgan Keegan & Company, Inc. Member FINRA, SIPC. Securities and insurance products are not FDIC insured, not a deposit, not an obligation of or guaranteed by any government agency and may lose value. This advertisement was prepared for Hal Lynde using material by Broadridge Investor Communication Solutions, Inc. Copyright 2011.

To submit your question, you may contact Hal Lynde at hal.lynde@morgankeegan.com or at 713-840-3640.

For more financial information, go to Hal.lynde.mkadvisor.com.

Dear Drenched,

Most dogs will drool for two reasons: when they see food and when they are hot. Abstain from dangling pork chops and triple-decker burgers in front of Lulu’s face and keep all food in sealed containers, away from her nose. Also, keep her cool. The only way for a dog to sweat is through the mouth, which, in Lulu’s case, could prove disastrously wet.

You can’t keep Lulu from drooling any more than you can keep her from breathing. Boxers drool. It’s in their genes. Actually, it’s in their lips. “Tight lipped” boxers have slightly more toned facial muscles compared to the “loose lipped” kind and therefore tend to be better able to hold the drool. It sounds like Lulu might be the loose-lipped kind of gal. Don’t expect to prevent 100% of her drooling.

So now that we’ve determined that Lulu’s mouth is filled with saliva that is bound to seep at any time, the only way to cope is to either restrict her movement to an area that is devoid of equipment and to become very good at cleaning.

Glass cleaner and paper towels do wonders for most drool puddles. Think of it as a live computer game: how much drool can you catch before it reaches your floor? You get 100 points for cleaning drool from in between your keyboard keys and an extra 500 points for wrenching drool out of your girlfriend’s sweater. It’s all in the attitude.

Send your drooling doc picture to TheGreensheet.com. The best looking pooch wins a super-sized bone.

- Marie

Do you have a pet question for Marie? Send her your pet ponderings at askmarie@thegreensheet.com.

1. Know the Lingo

Ever hear a used car commercial with a big booming voice saying something like…

“Get $5000 cash back on a 2 year loan for a deal on 2011 Camrys! $15,000 MSRP with only 5.9% APR!”

Catch any of that?

Me neither.

When buying a car, it helps to be familiar with the lingo. Otherwise, you’re not really having a conversation.

And if you’re not having a conversation, you certainly aren’t negotiating.

2. Research

This one seems obvious, but you would be surprised how few people actually take the going rate for a particular used car into account. Use Kelly’s Blue Book, the ultimate authority on car pricing, to guide your research. If you don’t know how much the car is worth, you open the door to getting suckered.

Know more so you don’t have to pay more.

3. Reject the Extras

Car dealers often try to make money on the back end of the deal by pitching you add-ons (like rust proofing). Even electronic windows (as opposed to hand cranks) can cost a pretty penny. Add-ons can often be installed cheaper elsewhere, and most of it is stuff you don’t need anyway.

Just say no to add-ons.

4. Tell the Dealer You Are Short on Time

Car dealers will often try to turn up the heat and imply you are missing out on a deal by waiting. In actuality, they’re just trying to unload a vehicle.

So, flip the script. Say you have a lot to do that day, but you had enough time that you thought you might be able to get something you liked as long as you went into it with your homework done.

Make it seem like the dealer has only a few moments to sell you.

5. Stand Your Ground

The dealer’s job is to make the sale. So, expect him to use every trick in the book to get you to buy, from telling you what a great price you are getting to how fast the car will fly off the lot.

But remember:

The dealer has to build margins into the deal, so he has room to negotiate. What those margins are is somewhat mysterious, but you know they have to be high enough to leave room for negotiation.

Don’t let dealers tell you they’re losing gobs of cash because they took a few bucks off the sticker price. Besides, there are a lot more dealers working than there are customers shopping on a given day.

Don’t feel pressure to purchase.

1. Move Everything Out

It’s hard to visualize how to organize without first emptying the room. Determine what activities you would like to take place in the garage or what will be stored there. For example, is your goal to park your car or simply to park your lawnmower? Do you want to use it as a workshop a laundry room? Will you store your gardening supplies? Woodworking tools? Kids toys? Sporting equipment? Make a list and write down your goals. That way, you can identify zones for your garage that work for you and your family.

Remove everything and evaluate the space and layout of the room. This will help you see possible storage and layout opportunities.

2. Build Upward

When you can no longer grow out into the room, try expanding upward. Use the walls for storage. There are plenty of solutions that can be used, from slat, grid, shelving, to cabinet storage systems that fit nicely onto your wall. Bike racks and shelving units save plenty of space because they can be raised when not in use and lowered to provide easy access.

Keeping items off the ground also better protects your stuff. The garage can be humid, and accidental spills are a fairly common occurrence. Building upward is a good solution.

3. Donate or Trash Unwanted Stuff

As you sort through your things, ask yourself: Do I need it? Do I love it? When is the last time I used it? Is it outgrown? Broken? Obsolete? If I donated it to charity, would someone get good use out of it?

4. Group Similar Items

Now that you have sorted items into their prospective zones or categories, store them accordingly and conveniently. Children’s toys should be stored within their reach. Household cleaning supplies should be placed higher up. Put the bikes on the bike rack (if you have one).

The easier it is to put something away, the more likely it is that it will be.

5. Label Everything

And I mean EVERYTHING. Not only will this help you and others identify what is in boxes and containers, but labeling shelves and cabinets can also help encourage others (and yourself) to put the item back in its home.

I can’t guarantee this will be the last time you clean your garage, but it should stave off the next round a little bit longer.

Dear Bailey,

Yes. The general rule is that any gifts over the $13,000 annual gift tax exclusion from one person to another are subject to federal gift tax and generation-skipping transfer tax (GSTT). However, an exception to this rule exists for certain tuition payments. Specifically, any tuition payments made by a grandparent (or anyone else) directly to a qualifying educational organization (e.g., a college) to cover a student's tuition expenses are exempt from federal gift tax and GSTT, even if such payments exceed the annual gift tax exclusion. The key is that such payments must be made directly to the qualifying educational institution. You will not qualify for the exemption if you gift the money directly to the student with instructions to apply it to tuition expenses. The unlimited exclusion does not cover books, supplies, or room and board expenses.

This type of gift may still be subject to state gift tax and/or GSTT. Call a tax attorney in your state for more information.

Hal

This information is for illustrative and discussion purposes only. Morgan Keegan does not provide legal or tax advice. You need to contact your legal and tax advisors for additional information and advice before making any investment decisions. Morgan Keegan & Company, Inc. Member FINRA, SIPC. Securities and insurance products are not FDIC insured, not a deposit, not an obligation of or guaranteed by Regions Bank, it affiliates, or any government agency and may lose value. This advertisement was prepared for Hal Lynde using material by Broadridge Investor Communication Solutions, Inc. Copyright 2011.

To submit your question, you may contact Hal Lynde at hal.lynde@morgankeegan.com or at 713-840-3640.

For more financial information, go to Hal.lynde.mkadvisor.com.

Dear Spoon,

I think your Mom better be in good shape for a seventy-five-year-old woman if you want to get her a sugar glider. If you do, one thing is for sure: you mom will not feel bored or lonely. Sugar gliders are small marsupials from Australia that closely resemble flying squirrels in their habits and behavior. They are very social animals who love to play and require a great deal of interaction. And they’re nocturnal. They’ll be up all night playing hide and seek with your mom. They also need to be fed a special diet that is high in vegetable and protein and includes regular treats of mealworm. Oh, and they reproduce 3 or 4 times a year. So there’s a good chance your mom will have ten new best furry friends flying around the house by Christmas.

On the other hand, they will happily cuddle with her and she will definitely have found a new purpose in life. Considering the level of commitment required to keep sugar gliders, I recommend you speak to your mom first to see if she really wants to become the mother of between one and ten furry little buddies. You should also visit pet shops and read as much information as possible before making a decision. Visit www.sugargliders.com for more information and if you do decide to give it a go, send us pictures. We love all kinds of pets here at The Greensheet and would be so proud to post pictures of your mom’s new friend.

- Marie

Do you have a pet question for Marie? Send her your pet ponderings at askmarie@thegreensheet.com.