If you are like me, you are probably planning to come by or give a Windows PC as a gift this holiday season. Most PC companies pre-load their PCs with a lot of applications – some of which are good but not all.
To get the best exercise out of your Windows PC, you will need to download and install additional applications or programs.
In this article, I list a few applications that I have been using for the past several years and which I assume are well-known.
I will also include some information about each of the program and where to get it.
There are several other ‘nice to have’ applications that I will cover in another article.
The best thing about this list? All the applications are freeware and won’t cost you a cent.
1. Firefox – a very considerable and capable alternative to Internet Explorer (IE) – the default web browser on Windows. Firefox is a great more secure browser than IE and is highly recommended as a replacement. There are hundreds of extensions for Firefox that add to its capabilities. Some extensions add features like ad blocking, RSS support and bookmark management while others improve upon the built-in functionality.
Get it at http://www.getfirefox.com
2. Zone Alarm/Kerio Personal Firewall – Software firewalls are applications that protect PCs from Internet threats. They inspect both incoming and outgoing connections ensuring that only legitimate traffic is allowed. Windows XP includes a firewall but these third-party products have more features.
Both Zone Alarm and Kerio Personal Firewall have received top reviews. You can’t use both of them at the same time but you can try both – one at a time – and choose to keep the one that is easier for you to use.
Net it the Kerio Personal Firewall at http://www.sunbelt-software.com/Kerio.cfm and
Zone Alarm at http://www.zonelabs.com/store/content/catalog/products/sku_list_za.jsp
3. SpyBotSD – Spybot SD (Search & Ruin) detects and removes spyware from your computer. In addition it also removes certain usage tracks such as lists of web sites visited.
Free support is offered at the Spybot SD web spot in the form of frequently asked questions (FAQ) documents, a searchable web site knowledge-base, and a free user succor forum.
The software is free for personal use but the author asks for donations if you win the software useful.
Get it at http://www.safer-networking.org/en/spybotsd/index.html
4. Ad-Aware – Ad-Aware is a good product that provides protection against many spyware programs. It can detect spyware programs running in memory, examine startup settings, block browser hijackings, remove tracking cookies, and fix registry changes made by intruding programs.
It is available in free (Personal) and commercial (Plus and Pro) versions. The personal version is full-featured enough for most home users. The company behind Ad-Aware, Lavasoft, provides regular free updates for the latest spyware definition files.
You may wonder for the need for this software along with SpybotSD mentioned above. The fact is both of these spyware-fighters have slightly different features. So having them both will give you more complete protection.
Unlike the firewalls mentioned above, you can use both of these at the same time.
Get it at http://www.lavasoft.com/products/ad-aware_se_personal.php
5. 7-zip – If you ever have to deal with zipped files of varions types, you need 7-zip. It is a compression/de-compression utility that lets you execute, update, extract archive files of four most approved formats on the Internet: zip, gzip, tar and bzip2. It also supports many other compression formats. Its simple interface can be accessed via the right-button menu right from Windows Explorer.
Get it at http://www.7-zip.com
The time taken to download and install these applications will replay itself once you start using them.
Happy computing!
Tags: delphi knowledge base software, instant knowledge base software, Knowledge Base Software Download, knowledge base software freeware, remlap knowledgebaseRelated Posts
Filed under Knowledge Base Software by on Feb 5th, 2012. Comment.
For all you super geeks I need to preface this with “No this isn’t a benchmark shoot out!”. Sorry. Basically it’s just me expounding on a subject that I have some knowledge of and born of a conversation with a buddy who can’t give me a great reason why he thinks Quicktime sucks. He has his belief and he is entitled to it. I’ve simply decided to lay my thinking on the subject out on the table.
I like Quicktime. It has a very sharp, even at low res and high compression, image quality. It streams nicely and the associate player/software is very well done. Simple to utilize and mostly non-invasive(ok some windows startup stuff). It’s free to use for playback and you gotta pay for encoding etc. Most of the non-free stuff is enforced objective through the player and not via the codec so there is a free version called Quicktime Alternative that has stripped the codec out and paired it with Media Player Classic for windows as a player and the codec can be used by other players. I also own a Mac personally which comes with Quicktime kind of integrated and it works flawlessly. Quicktime Pro is not all that expensive at like $30 so if you just can’t deal on the free end it isn’t exactly going to break the bank to go Pro. For me this is the way to go. Multi-Platform, sharp, high quality, and free options if need be.
Xvid is the next most popular codec but only because it is free and has been picked up and fostered by the pirate community. It makes video look darn reliable and compress down small which is ideal for shuttleing around those free’d hollywood films. It doesn’t have a specific player packaged with it and is a stand alone codec. One thing that I’m sure some have managed to make it do but that is not done widely is to make it stream. There is no easy straight forward process to do that. This seems to be it’s biggest downfall. Well, that and it’s user base. Don’t get me wrong I love to derive a flick before it comes out but that isn’t going to make this the first state I go when I need to do some lawful media on the internet. I guess the main up side to this is that there are open source implimentations which makes this better for the Linux community to impliment but that doesn’t benefit the rest of us a whole lot if some one doesnt figure out how to move it in to a more professional easier to use framework.
Last but not least Theora. Theora is the Ogg implimentation for video. To be impartial I’m not sure why this doesn’t see more wide spread use. Ogg offers higher quality audio at lower bit rate/compressions and I’ve seen Theora build some small files come out looking great. So what’s the deal? The website has outrageous platform binaries available and the project is open source. So why is this stuck in a similar situation as Xvid? It suffers from the same short comings as Xvid in that it is not widely ragged despite being free. It came about shortly after Xvid and I think that has detracted a lot of attention from it. I contemplate it comes down to marketing. They have to fall this in to a single drop and go player package for all platforms and then advertise the crap out of it by making version submission posts to slashdot etc.
So there it is. Lack of streaming along with a lack of a ‘just works’ sort of package from Xvid and Theora are the things that really make those two fall short for me. Xvid is good but I’m sure that Theora can best Xvid in quality. Now if only it were in more wide spread use.
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Filed under Knowledge Base Software by on Jan 20th, 2012. Comment.
Because of the evolution of globalization and internationalization, software localization has made a mountainous progress these years. But the lack of adequate communication about this industry makes quite a few of us have limited knowledge about software localization, even some misunderstandings. Here listed four typical misunderstanding.
I. Software Localization = Software Translation
Many non-professionals have the same and similar misunderstandings. The difference between software localizationand software translation relies on their differentiation in the definition and covering range.
Software localization is the process of adapting software products/web products to specific local languages and cultures in target market while software translation refers to the language translation process of user interface, Help files and manuals, and so on. Therefore, software translation is unbiased one process of software localization.
In fact, besides translation, there are many other important aspects in the localization process, for example, software compilation and translation, software testing, desktop publishing, project management, etc. Software localization is more than mere language translation, it involves more extensive coverage and content. Software localization has become a systematic software engineering.
II. Any software Is Easy to Localize
According to the theory of software design, any software could be localized. But different software has different degree of localization capability.
If the target software has wonderful localization capability, its localized contents could be separated individually from the software code in the do. These contents includes menu, static character in dialogue box, screentips, icon, version information, etc. So for software with good localization capability, we only need to localize the contents to adapt to multiple languages. The functionality of the source software will not be influenced. And it’s not necessary for us to change the source code.
The design flexibility and translation-ability of the software internationalization ensure sound localization ability of the software. Design flexibility simplifies the process of the adaptation to local language, such as software code supporting for DBCS or bi-directional language. The design translation-ability guarantees that any language components of any product is easy to distinguish and understand and remains independent from other components.
All in all, only the software with good internationalization capability is easy to localization.
III. Software Globalization = Software Internationalization
Software globalization and software internationalization are basics of software localization. Their differences include definition and range.
Software internationalization refers to the process of making the functionality and the code deign of the target software have the ability to handle multiple languages and cultures during program design and document development. So when creating differentiated language versions, we don’t need to redesign the code of the source program.
Software globalization is the business activities for promoting the software in global market. It includes proper international design, software localization integration, marketing promotion, sale and support.
In comparison, software globalization has wider range and affirm. It includes the business campaigns for the software entering into international market. Software globalization at least contains internationalization of the new software design, software localization, strategy of establishing international brand, marketing, international sale, technical support service, etc.
Software internationalization pays more attention on the implementation of technical activities in software design and software development. Software internationalization is part of software globalization. The appropriate internationalization of the software is the technical guarantee for smooth software globalization and localization.
IV. Various Translation Companies – the Best Institution for Software Localization
In recent years, many companies claim that they offer software localization service. But most of their service range is limited to software document translation. They lack the experience of software compilation, testing, typesetting, large-scale project management, etc.
The formation of professional software specialization motivates the advent of specific localization companies. Most of them have many-year experience of technical localization support as well as management. They are familiar with the entire process of localization and the requirements of clients. These companies always master the latest localization technique and tools. They have the capability of offering full set of localization services for multiple languages.
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Filed under Knowledge Base Software by on Oct 10th, 2011. Comment.
Some people have strong personal feelings with respect to making money from their blogs. If you think commercializing your blog is evil, immoral, unethical, uncool, lame, greedy, obnoxious, or anything along those lines, then don’t commercialize it.
If you have mixed feelings about monetizing your blog, then sort out those feelings first. If you think monetizing your site is astounding, fine. If you mediate it’s evil, fine. But execute up your mind before you seriously consider starting down this path. If you want to succeed, you must be congruent. Generating income from your blog is challenging enough — you don’t want to be dealing with self-sabotage at the same time. It should feel genuinely good to score income from your blog — you should be driven by a healthy ambition to succeed. If your blog provides genuine value, you fully deserve to earn income from it. If, however, you find yourself full of doubts over whether this is the right path for you, you might find this article helpful: It’s about balancing your needs with the needs of others.
If you do decide to generate income from your blog, then don’t be terrorized about it. If you’re going to put up ads, then really put up ads. Don’t just stick a puny exiguous ad square in a remote corner somewhere. If you’re going to inquire donations, then really request donations. Don’t attach up a barely visible “Donate” link and pray for the best. If you’re going to sell products, then really sell them. Create or acquire the best quality products you can, and give your visitors compelling reasons to buy. If you’re going to do this, then fully commit to it. Don’t take a half-assed approach. Either be full-assed or no-assed.
You can reasonably expect that when you open commercializing a free site, some people will complain, depending on how you do it. I launched this site in October 2004, and I began putting Google Adsense ads on the site in February 2005. There were some complaints, but I expected that — it was really no big deal. Less than 1 in 5,000 visitors actually sent me negative feedback. Most people who sent feedback were surprisingly supportive. Most of the complaints died off within a few weeks, and the site began generating income almost immediately, although it was pretty low — a whopping $53 the first month. If you’d like to see some month-by-month specifics, Adsense is still my single best source of revenue for this site, although it’s certainly not my only source. More on that later…
Can you make a decent income online?
Yes, absolutely. At the very least, a high five-figure annual income is certainly an attainable goal for an individual working full-time from home. I’m making a healthy income from StevePavlina.com, and the site is only 19 months old… barely a toddler. If you have a day job, it will take longer to generate a livable income, but it can aloof be done part-time if you’re willing to devote a lot of your spare time to it. I’ve always done it full-time.
Can most people do it?
No, they can’t. I hope it doesn’t shock you to peruse a personal development web site use the dreaded C-word. But I happen to agree with those who say that 99% of people who try to generate serious income from their blogs will fail. The tagline for this status is “Personal Development for Smart People.” And unfortunately (or fortunately, depending on your outlook), lustrous people are a minority on this planet. So while most people can’t make a living this way, I would say that most smart people can. How do you know whether or not you qualify as smart? Here’s a good rule of thumb: If you have to ask the question, you aren’t.
This kind of 99-1 ratio isn’t unique to blogging though. You’ll see it in any field with relatively low barriers to entry. What percentage of wannabe actors, musicians, or athletes ever make enough money from their passions to support themselves? It doesn’t take much effort to start a blog these days — almost anyone can do it. Talent counts for something, and the talent that matters in blogging is intelligence. But that just gets you in the door. You need to specifically apply your intelligence to one particular talent. And the best words I can think of to describe that particular talent are: web savvy.
If you are very web savvy, or if you can learn to become very web savvy, then you have an excellent shot of making enough money from your blog to shroud all your living expenses… and then some. But if becoming truly web savvy is more than your gray matter can handle, then I’ll offer this advice: Don’t finish your day job.
Web savvy
What do I mean by web savvy? You don’t need to be a programmer, but you need a decent functional belief of a variety of web technologies. What technologies are “key” will depend on the nature of your blog and your means of monetization. But generally speaking I’d list these elements as significant:
- blog publishing software
- HTML/CSS
- blog comments (and comment spam)
- RSS/syndication
- feed aggregators
- pings
- trackbacks
- full vs. partial feeds
- blog carnivals (for kick-starting your blog’s traffic)
- search engines
- search engine optimization (SEO)
- page rank
- social bookmarking
- tagging
- contextual advertising
- affiliate programs
- traffic statistics
Optional: podcasting, instant messaging, PHP or other web scripting languages.
I’m definite I missed a few due to familiarity blindness. If scanning such a list makes your head spin, I wouldn’t recommend trying to do a full-time living from blogging just yet. Certainly you can still blog, but you’ll be at a serious disadvantage compared to someone who’s more web savvy, so don’t expect to achieve stellar results until you expand your knowledge base.
If you want to sell downloadable products such as ebooks, then you can add e-commerce, SSL, digital delivery, fraud prevention, and online databases to the list. Again, you don’t need to be a programmer; you just need a basic understanding of these technologies. Even if you hire someone else to handle the low-level implementation, it’s important to know what you’re getting into. You need to be able to trust your strategic decisions, and you won’t be able to do that if you’re a General who doesn’t know what a gun is.
A lack of understanding is a major cause of failure in the realm of online income generation. For example, if you’re clueless about search engine optimization (SEO), you’ll probably cripple your search engine rankings compared to someone who understands SEO well. But you can’t consider each technology in isolation. You need to understand the connections and trade-offs between them. Monetizing a blog is a balancing act. You may need to balance the needs of yourself, your visitors, search engines, those who link to you, social bookmarking sites, advertisers, affiliate programs, and others. Seemingly minor decisions like what to title a web page are significant. In coming up with the title of this article, I have to take all of these potential viewers into consideration. I want a title that is resplendent to human visitors, drives reasonable search engine traffic, yields relevant contextual ads, fits the theme of the location, and encourages linking and social bookmarking. And most importantly I want each article to provide genuine value to my visitors. I do my best to create titles for my articles that balance these various needs. Often that means abandoning cutesy or clever titles in favor of direct and comprehensible ones. It’s little skills like these that help drive sustainable traffic growth month after month. Missing out on just this one skill is enough to cripple your traffic. And there are dozens of these types of skills that require web savvy to understand, respect, and apply.
This sort of knowledge is what separates the 1% from the 99%. Both groups may work just as hard, but the 1% is getting much better results for their efforts. It normally doesn’t take me more than 60 seconds to title an article, but a lot of experience goes into those 60 seconds. You really just have to learn these ideas once; after that you can apply them routinely.
Whenever you approach across a significant web technology you don’t understand, look it up on Google or Wikipedia, and dive into it long enough to acquire a basic belief of it. To make money from blogging it’s important to be something of a jack of all trades. Maybe you’ve heard the expression, “A jack of all trades is a master of none.” That may be true, but you don’t need to master any of these technologies — you just have to be good enough to use them. It’s the difference between being able to drive a car vs. becoming an auto mechanic. Strive to achieve functional knowledge, and then move on to something else. Even though I’m an experienced programmer, I don’t know how many web technologies actually work. I don’t really care. I can still use them to generate results. In the time it would take me to fully understand one recent technology, I can achieve sufficient functional knowledge to apply several of them.
Thriving on change
Your greatest risk isn’t that you’ll make mistakes that will cost you. Your greatest risk is that you’ll miss opportunities. You need an entrepreneurial mindset, not an employee mindset. Don’t be too concerned with the risk of loss — be more concerned with the risk of missed gains. It’s what you don’t know and what you don’t do that will hurt you the worst. Blogging is cheap. Your expenses and financial risk should be minimal. Your real anguish should be missing opportunities that would have made you money very easily. You need to develop antennae that can listen out for new opportunities. I highly recommend subscribing to Darren Rowse’s Problogger blog — Darren is tremendous at uncovering new income-generating opportunities for bloggers.
The blogosphere changes rapidly, and change creates opportunity. It takes some brains to decipher these opportunities and to take advantage of them before they disappear. If you hesitate to capitalize on something new and exciting, you may simply miss out. Many opportunities are temporary. And every day you don’t implement them, you’re losing money you could have earned. And you’re also missing opportunities to compose traffic, grow your audience, and benefit more people.
I used to get annoyed by the rapid rate of change of web technologies. It’s even more rapid than what I saw when I worked in the computer gaming industry. And the rate of change is accelerating. Almost every week now I learn about some enthralling new web service or idea that could potentially lead to big changes down the road. Making sense of them is a full-time job in itself. But I learned to love this insane pace. If I’m confused then everyone else is probably confused too. And people who only do this part-time will be very confused. If they aren’t confused, then they aren’t keeping up. So if I can be just a little bit faster and understand these technologies just a little bit sooner, then I can capitalize on some serious opportunities before the barriers to entry become too high. Even though confusion is uncomfortable, it’s really a good thing for a web entrepreneur. This is what creates the space for a college student to accept $1,000,000 online in unprejudiced a few months with a clever idea. Remember this isn’t a zero-sum game. Don’t let someone else’s success fabricate you feel diminished or jealous. Let it inspire you instead.
What’s your overall income-generation strategy?
I don’t want to insult anyone, but most people are utterly clueless when it comes to generating income from their blogs. They slap things together haphazardly with no rhyme or reason and hope to generate lots of money. While I’m a strong advocate of the ready-fire-aim near, that strategy does require that you eventually aim. Ready-fire-fire-fire-fire will just create a mess.
Take a moment to whisper a basic income-generating strategy for your site. If you aren’t good at strategy, then just reach up with a general philosophy for how you’re going to generate income. You don’t need a full business plan, just a description of how you plan to get from $0 per month to whatever your income goal is. An initial target goal I used when I first started this situation was $3000 per month. It’s a somewhat arbitrary figure, but I knew if I could advance $3000 per month, I could certainly push it higher, and $3000 is enough income that it’s going to make a meaningful disagreement in my finances. I reached that level 15 months after launching the site (in December 2005). And since then it’s continued to increase nicely. Blogging income is actually quite easy to maintain. It’s a lot more secure than a regular job. No one can fire me, and if one source of income dries up, I can always add new ones. We’ll address multiple streams of income soon…
Are you going to generate income from advertising, affiliate commissions, product sales, donations, or something else? Maybe you want a combination of these things. However you decide to generate income, put your basic strategy down in writing. I took 15 minutes to create a half-page summary of my monetization strategy. I only update it about once a year and review it once a month. This isn’t difficult, but it helps me stay focused on where I’m headed. It also allows me to say no to opportunities that are inconsistent with my plan.
Refer to your monetization strategy (or philosophy) when you need to make design decisions for your web site. Although you may have multiple streams of income, decide which type of income will be your primary source, and design your site around that. Do you need to funnel people towards an order form, or will you place ads all over the site? Different monetization strategies suggest different design approaches. Think about what specific action you want your visitors to eventually take that will generate income for you, and design your site accordingly.
When devising your income strategy, feel free to cheat. Don’t re-invent the wheel. Copy someone else’s strategy that you’re convinced would work for you too. Do NOT copy anyone’s content or site layout (that’s copyright infringement), but take note of how they’re making money. I decided to monetize this site with advertising and affiliate income after researching how various successful bloggers generated income. Later I added donations as well. This is an effective combo.
Traffic, traffic, traffic
Assuming you feel qualified to take on the challenge of generating income from blogging (and I haven’t scared you away yet), the three most important things you need to monetize your blog are traffic, traffic, and traffic.
Just to throw out some figures, last month (April 2006), this site received over 1.1 million visitors and over 2.4 million page views. That’s almost triple what it was impartial six months ago.
Why is traffic so important? Because for most methods of online income generation, your income is a function of traffic. If you double your traffic, you’ll probably double your income (assuming your visitor demographics remain fairly consistent). You can screw almost everything else up, but if you can generate serious traffic, it’s really hard to fail. With sufficient traffic the realistic worst case is that you’ll eventually be able to monetize your web site via trial and error (as long as you keep those visitors coming).
When I first launched this blog, I knew that traffic building was going to be my biggest challenge. All of my plans hinged on my ability to build traffic. If I couldn’t build traffic, it was going to be very difficult to succeed. So I didn’t even try to monetize my site for the first several months. I unprejudiced focused on traffic building. Even after 19 months, traffic building is still the most important part of my monetization plan. For my current traffic levels, I know I’m undermonetizing my status, but that’s OK. Proper now it’s more principal to me to keep growing the station, and I’m optimizing the income generation as I go along.
Traffic is the primary fuel of online income generation. More visitors means more ad clicks, more product sales, more affiliate sales, more donations, more consulting leads, and more of whatever else that generates income for you. And it also means you’re helping more and more people.
With respect to traffic, you should know that in many respects, the rich do get richer. High traffic leads to even more traffic-building opportunities that just aren’t accessible for low-traffic sites. On average at least 20 bloggers add recent links to my site every day, my articles can easily surge to the top of social bookmarking sites like del.icio.us, and I’m getting more frequent requests for radio interviews.
If you’re intelligent and web savvy, you should also be able to eventually build a high-traffic web set. And you’ll be able to leverage that traffic to build even more traffic.
How to build traffic
Now if traffic is so crucial, how do you build it up to significant levels if you’re starting from rock bottom?
There is one other important traffic-building tip I’ll provide here though.
Blog Carnivals. Purchase full advantage of blog carnivals when you’re just starting out (click the previous link and read the FAQ there to learn what carnivals are if you don’t already know). Periodically submit your best blog posts to the appropriate carnivals for your niche. Carnivals are easy ways to get links and traffic, and best of all, they’re free. Submitting only takes minutes if you use a multi-carnvival submission form. Do NOT spam the carnivals with irrelevant material — only submit to the carnivals that are a match for your content.
In my early traffic-building days, I’d do carnivals submissions once a week, and it helped a great deal in going from nothing to about 50,000 visitors per month. You still have to produce great order, but carnivals give you a free shot at marketing your unknown blog. Free marketing is precisely the kind of opportunity you don’t want to miss. Carnivals are like an open-mic night at a comedy club — they give amateurs a chance to show off their stuff. I still submit to sure carnivals every once in a while, but now my traffic is so high that relatively speaking, they don’t fabricate much difference anymore. Just to increase my traffic by 1% in a month, I need 11,000 unique visitors, and even the best carnivals don’t push that great traffic. But you can purchase up dozens or even hundreds of new subscribers from each round of carnival submissions, so it’s a great place to inaugurate. Plus it’s very easy.
If your traffic isn’t growing month after month, does it mean you’re doing something wrong? Most likely you aren’t doing enough things right. Again, making mistakes is not the issue. Missing opportunities is.
Will putting ads on your site hurt your traffic?
Here’s a common fright I hear from people who are considering monetizing their web sites:
Putting ads on my site will cripple my traffic. The ads will drive people away, and they’ll never come back.
Well, in my experience this is absolutely, positively, and otherwise completely and totally… FALSE. It’s just not correct. Guess what happened to my traffic when I put ads on my site. Nothing. Guess what happened to my traffic when I put up more ads and donation links. Nothing. I could detect no net effect on my traffic whatsoever. Traffic continued increasing at the same rate it did before there were ads on my station. In fact, it might have even helped me a little, since some bloggers actually linked to my site just to point out that they didn’t like my ad layout. I’ll leave it up to you to form your own theories about this. It’s probably because there’s so much advertising online already that even though some people will complain when a free site puts up ads, if they value the content, they’ll still come back, regardless of what they say publicly.
Most mature people understand it’s reasonable for a blogger to score income from his/her work. I think I’m lucky in that my audience tends to be very mature — immature people generally aren’t fervent in personal development. To create an article like this takes serious effort, not to mention the hard-earned experience that’s required to write it. This article alone took me over 15 hours of writing and editing. I think it’s perfectly reasonable to earn an income from such work. If you get no value from it, you don’t pay anything. What could be more blooming than that? The more income this blog generates, the more I can put into it. For example, I used some of the income to capture podcasting equipment and added a podcast to the site. The podcasts are all ad-free. I’m also planning to add some additional services to this site in the years ahead. More income = better service.
At the time of this writing, my site is very ad-heavy. Some people point this out to me as if I’m not aware of it: “You know, Steve. Your web site seems to contain an awful lot of ads.” Of course I’m aware of it. I’m the one who put the ads there. There’s a reason I have this configuration of ads. They’re effective! People keep clicking on them. If they weren’t effective, I’d remove them good away and try something else.
I do avoid putting up ads that I personally catch annoying when I glance them on other sites, including pop-ups and interstitials (stuff that flies across your screen). Even though they’d make me more money, in my opinion they degrade the visitor experience too much.
I also provide two ad-free outlets, so if you really don’t like ads, you can actually read my content without ads. First, I provide a full-text RSS feed, and at least for now it’s ad-free. I do, however, include a donation request in the bottom of my feeds.
If you want to see some actual traffic data, take a leer at the 2005 traffic growth chart. I first put ads on the site in February 2005, and although the chart doesn’t cover pre-February traffic growth, the growth rate was very similar before then. For an independent source, you can also look at my traffic chart on Alexa. You can select different Range options to go further back in time.
Multiple streams of income
You don’t need to put all your eggs in one basket. Mediate multiple streams of income. On this dwelling I actually have six different streams of income. Can you count them all? Here’s a list:
- Google Adsense ads (pay per click and pay per impression advertising)
- Donations (via PayPal or snail mail — yes, some people do mail a check)
- Text Link Ads (sold for a fixed amount per month)
- Chitika eMiniMalls ads (pay per click)
- Affiliate programs like Amazon and LinkShare (commission on products sold, mostly books)
- Advertising sold to individual advertisers (three-month campaigns or longer)
Note: If you’re reading this article a while after its original publication date, then this list is likely to change. I frequently experiment with different streams.
Adsense is my biggest single source of income, but some of the others do pretty well too. Every stream generates more than $100/month.
My second biggest income stream is actually donations. My average donation is about $10, and I’ve received a number of $100 donations too. It only took me about an hour to set this up via PayPal. So even if your snort is free like mine, give your visitors a means to voluntarily contribute if they wish. It’s win-win. I’m very grateful for the visitor support. It’s a nice form of feedback too, since I notice that sure articles produced a surge in donations — this tells me I’m hitting the mark and giving people genuine value.
These aren’t my only streams of income though. I’ve been earning income online since 1995. With my computer games business, I have declare sales, royalty income, some advertising income, affiliate income, and donations (from the free articles). And if you throw in my wife’s streams of income, it gets really ridiculous: advertising, pronounce book sales, book sales through distributors, web consulting, affiliate income, more Adsense income, and probably a few sources I forgot. Suffice it to say we receive a lot of paychecks. Some of them are minute, but they add up. It’s also extremely low risk — if one source of income dries up, we just expand existing sources or create new ones. I encourage you to think of your blog as a potential outlet for multiple streams of income too.
Automated income
With the exception of #6, all of these income sources are fully automated. I don’t have to do anything to fill them except deposit checks, and in most cases I don’t even have to do that because the money is automatically deposited to my bank account.
I love automated income. With this blog I currently have no sales, no employees, no products, no inventory, no credit card processing, no fraud, and no customers. And yet I’m still able to generate a reasonable (and growing) income.
Why procure a regular job and trade your time for money when you can let technology do all that work for you? Imagine how it would feel to wake up each morning, go to your computer, and check how much money you made while you were sleeping. It’s a really nice station to be in.
Blogging software and hardware
I use WordPress for this blog, and I highly recommend it. Wordpress has lots of features and a solid interface. And you can’t beat its impress — free.
The rest of this site is custom-coded HTML, CSS, PHP, and MySQL. I’m a programmer, so I coded it all myself. I could have just as easily feeble an existing template, but I wanted a simple straightforward get for this spot, and I wanted the look of the blog to match the rest of the plot. Plus I consume PHP and MySQL to do some creative things outside the blog, like the Million Dollar Experiment.
I don’t recommend using a hosted service like Blogger if you want to seriously monetize your blog. You don’t gather enough control. If you don’t have your own URL, you’re tying yourself to a service you don’t own and building up someone else’s asset. You want to build page rank and links for your own URL, not someone else’s. Plus you want sufficient control over the layout and design of your space, so you can jump on any opportunities that require low-level changes. If you use a hosted blog, you’re at the mercy of the hosting service, and that puts the future of any income streams you get with them at risk. It’s a bit more work up front to self-host, but it’s less uncertain in the long speed.
Web hosting is cheap, and there are plenty of good hosts to choose from. I recommend Pair.com for a starter hosting account. They aren’t the cheapest, but they’re very reliable and have decent support. I know many online businesses that host with them, and my wife refers most of her clients there.
As your traffic grows you may need to upgrade to a dedicated server or a virtual private server (VPS). This web site is hosted by ServInt. I’ve hosted this site with them since day one, and they’ve been a truly awesome host. What I like most about them is that they have a smooth upgrade path as my traffic keeps growing. I’ve gone through several upgrades with them already, and all have been seamless. The nice thing about having your fill server is that you can place as many sites on it as the server can handle. I have several sites running on my server, and it doesn’t cost me any additional hosting fees to add another region.
Comments or no comments
When I began this blog, I started out with comments enabled. As traffic grew, so did the level of commenting. Some days there were more than 100 comments. I noticed I was spending more and more time managing comments, and I began to question whether it was worth the effort. It became definite that with continued traffic growth, I was going to have to change my approach or die in comment hell. The personal development topics I write about can easily generate lots of questions and discussion. Just imagine how many follow-up questions an article like this could generate. With tens of thousands of readers, it would be insane. Also, nuking comment spam was chewing up more and more of my time as well.
But after looking through my stats, I soon realized that only a tiny section of visitors ever watch at comments at all, and an even smaller fraction ever post a comment (well below 1% of total visitors). That made my decision a lot easier, and in October 2005, I turned blog comments off. In retrospect that was one of my best decisions. I wish I had done it sooner.
If you’d like to read the full details of how I came to this decision, I’ve written about it previously: Blog Comments and More on Blog Comments.
Do you need comments to fabricate traffic? Obviously not. Just like when I put up ads, I saw no decline in traffic when I turned off comments. In fact, I think it actually helped me. Although I turned off comments, I kept trackbacks enabled, so I started getting more trackbacks. If people wanted to publicly comment on something I’d written, they had to do so on their own blogs and post a link. So turning off comments didn’t kill the discussion — it just took it off site. The volume of trackbacks is far more reasonable, and I can easily keep up with it. I even pop onto other people’s sites and post comments now and then, but I don’t feel obligated to participate because the discussion isn’t on my own position.
I realize people have very strong feelings about blog comments and community building. Many people hold the belief that a blog without comments unbiased isn’t a blog. Personally I deem that’s utter nonsense — the data just doesn’t succor it. The vast majority of blog readers neither read nor post comments. Only a very tiny and very vocal group even care about comments. Some bloggers say that having comments helps get traffic, but I saw no evidence of that. In fact, I think it’s objective the opposite. Managing comments detracts from writing new posts, and it’s far better to get a trackback and a link from someone else’s blog vs. a comment on your own blog. As long-term readers of my blog know, when faced with ambiguity, my preference is to try both alternatives and compare actual results with right results. After doing that my conclusion is this: No comment.
Now if you want to benefit comments for non-traffic-building reasons like socializing or making new contacts, I say go for it. Objective don’t assume that comments are necessary or even helpful in building traffic unless you directly test this assumption yourself.
Build a complete web site, not honest a blog
Don’t limit your web site to honest a blog. Feel free to produce it out. Although most of my traffic goes straight to this blog, there’s a whole site built around it. For example, the home page of this situation presents an overview of all the sections of the set, including the blog, article section, audio recount, etc. A lot of people collected don’t know what a blog is, so if your whole site is your blog, those people may be a little confused.
Testing and optimization
In the beginning you won’t know which potential streams of income will work best for you. So try everything that’s reasonable for you. If you learn about a new potential income stream, test it for a month or two, and measure the results for yourself. Feel free to cut streams that unbiased aren’t working for you, and put more effort into optimizing those streams that show real promise.
A few months ago, I signed up for an yarn with Text Link Ads. It took about 20 minutes. They sell small text ads on my space, split the revenue with me 50-50, and deposit my earnings directly into my PayPal record. This month I’ll make around $600 from them, possibly more if they sell some new ads during the month. And it’s totally passive. If I never tried this, I’d miss out on this easy extra income.
For many months I’ve been tweaking the Adsense ads on this site. I tried different colors, sizes, layouts, etc. I continue to experiment now and then, but I have a hard time beating the current layout. It works very well for me. Adsense doesn’t allow publishers to reveal specific CPM and CTR data, but mine are definitely above par. They started out in the gutter though. You can easily double or triple your Adsense revenue by converting a unpleasant layout into a better one. This is the main reason why during my first year of income, my traffic grew at 20% per month, but my income grew at 50% per month. Frequent testing and optimization had a major positive impact. Many of my tests failed, and some even made my income go down, but I’m glad I did all that testing. If I didn’t then my Adsense income would only be a fraction of what it is now.
It’s cheap to experiment. Every new advertising or affiliate service I’ve tried so far has been free to note up. Often I can add a new income stream in less than an hour and then wait a month to perceive how it does. If it flops then at least I learned something. If it does well, wonderful. As a blogger who wants to generate income, you should always be experimenting with original income streams. If you haven’t tried anything new in six months, you’re almost certainly missing some golden opportunities. Every blog is different, so you need to test things for yourself to see what works for you. Failure is impossible here — you either succeed, or you learn something.
Pick your niche, but make sure it isn’t too small
Pick a niche for your blog where you have some significant expertise, but originate sure it’s a big enough niche that you can manufacture significant traffic. My wife runs a popular vegan web site. She does pretty well within her niche, but it’s just not a very big niche. On the other hand, my topic of personal development has remarkable broader appeal. Potentially anyone can be keen in improving themselves, and I have the flexibility to write about topics like productivity, self-discipline, relationships, spirituality, health, and more. It’s all relevant to personal development.
Pick a niche that you’re passionate about. I’ve written 400+ articles so far, and I still feel like I’m just getting started. I’m not feeling burnt out at all. I chose to build a personal development station because I’m very knowledgeable, experienced, and passionate about this subject. I couldn’t imagine a better topic for me to write about.
Don’t pick a niche just because you think it will make you money. I see many bloggers try to do that, and it’s almost invariably a recipe for failure. Reflect about what you love most, and then find a map to make your topic moving to a massive global audience. Consider what will provide genuine value to your visitors. It’s all about what you can give.
A broad enough topic creates more potential advertising partners. If I keep writing on the same subtopic over and over, I may exhaust the supply of advertisers and hit an income ceiling. But by writing on many different topics under the same umbrella, I widen the field of potential advertisers. And I expand the appeal of my site at the same time.
Fabricate it positive to your visitors what your blog/site is about. Often I visit a blog with a clever title and tagline that reveals nothing about the site’s contents. In that case I generally assume it’s just a personal journal and move on. I love to be clever too, but I’ve found that clarity yields better results than cleverness.
Posting frequency and length
Bloggers have different opinions about the right posting length and frequency. Some bloggers say it’s best to write short (250-750 word) entries and post 20x per week or more. I’ve seen that strategy work for some, but I decided to do delicate much the opposite. I usually aim for about 3-5 posts per week, but my posts are noteworthy longer (typically 1000-2000 words, sometimes longer than 5000 words, including the monster you’re reading right now). That’s because rather than throwing out lots of short tips, I engage to write more exhaustive, in-depth articles. I gather that deeper articles are better at generating links and referrals and building traffic. It’s true that fewer people will take the time to read them, but those that do will enjoy some serious take-away value. I don’t believe in creating disposable content just to increase page views and ad impressions. If I’m not truly helping my visitors, I’m wasting their time.
Expenses
Blogging is dirt cheap.
I don’t spend money on advertising or promotion, so my marketing expenses are nil. Essentially my content is my marketing. If you like this article, you’ll probably find many more gems in the archives.
My only loyal expenses for this site are the hosting (I currently pay $149/month for the web server and bandwidth) and the domain name renewal ($9/year). Nearly all of the income this site generates is profit. This trickles down to my personal income, so of course it’s subject to income tax. But the real business expenses are minimal.
The reason I pay so remarkable for hosting is simply due to my traffic. If my traffic were much lower, I could run this site on a cheap shared hosting account. A database-driven blog can be a real resource hog at high traffic levels. The same goes for online forums. As traffic continues to increase, my hosting bill will go up too, but it will still be a tiny fraction of total income.
Perks
Depending on the nature of your blog, you may be able to enjoy some nice perks as your traffic grows. Almost every week I catch free personal development books in the mail (for potential review on this site). Sometimes the author will send it directly; other times the publisher will ship me a batch of books. I also receive CDs, DVDs, and other personal development products. It’s hard to keep up sometimes (I have a queue of about two dozen books honest now), but I am a voracious consumer of such products, so I do plow through them as swiftly as I can. When something strikes me as worthy of mention, I do indeed write up a review to share it with my visitors. I have very high standards though, so I review less than 10% of what I receive. I’ve read over 700 books in this field and listened to dozens of audio programs, so I’m pretty good at filtering out the fluff. As I’m sure you can imagine, there’s a great deal of self-help fluff out there.
My criteria for reviewing a product on this site is that it has to be original, compelling, and profound. If it doesn’t meet these criteria, I don’t review it, even if there’s a generous affiliate program. I’m not going to risk abusing my relationship with my visitors unprejudiced to beget a quick buck. Making money is not my main motivation for running this situation. My main motivation is to grow and to help others grow, so that always comes first.
Your blog can also gain you access to certain events. A high-traffic blog becomes a potential media outlet, so you can actually think of yourself as a member of the press, which indeed you are. In a few days, my wife and I will be attending a three-day seminar via a free press pass. The regular price for these tickets is $500 per person. I’ll be posting a fat review of the seminar next week. I’ve been to this particular seminar in 2004, so I already have high expectations for it. Dr. Wayne Dyer will be the keynote speaker.
I’m also using the popularity of this blog to set up interviews with people I’ve always wanted to learn more about. This is beautifully win-win because it creates value for me, my audience, and the person being interviewed. Recently I posted an exclusive interview with multi-millionaire Marc Allen as well as a review of his latest book, and I’m lining up other interviews as well. It isn’t hard to convince someone to do an interview in exchange for so much free exposure.
Motivation
I don’t think you’ll come by very far if money is your #1 motivation for blogging. You have to be driven by something much deeper. Money is objective frosting. It’s the cake underneath that matters. My cake is that I absolutely appreciate personal development – not the phony “fast and easy” junk you see on infomercials, but steady growth that makes us better human beings. That’s my passion. Pouring money on top of it just adds more fuel to the fire, but the fire is still there with or without the money.
What’s your passion? What would you blog about if you were already set for life?
Blogging lifestyle
Perhaps the best part of generating income from blogging is the freedom it brings. I work from home and situation my own hours. I write whenever I’m inspired to write (which for me is quite often). Plus I get to spend my time doing what I love most — working on personal growth and helping others do the same. There’s nothing I’d rather do than this.
Perhaps it’s good that 99 out of 100 people can’t fabricate a decent living from blogging yet. But maybe you’re among the 1 in 100 who can.
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Filed under Knowledge Base Software by on Sep 30th, 2011. Comment.
If you itemize deductions on your annual U.S. income tax return, you can claim a deduction for charitable contributions. When you donate property, you will need to assign a value in order to determine how much you can deduct. There are certain tax rules and guidelines to follow in determining that value.
Fair Market Value
Fair market value is a common measure of the amount that can be deducted. For income tax purposes, graceful market value is “the designate that would be agreed on between a willing buyer and a willing seller, with neither being required to act, and both having reasonable knowledge of the relevant facts”. In determining fair market value, all factors that affect the value are relevant and must be taken into consideration. These factors include the cost of the item, the selling prices of comparable items, replacement cost, and the opinions of experts.
Sparkling market value also depends on desirability, use, and scarcity of the item. For example, an item of former furniture may be out of style, and in bad condition, and may have very little value. On the other hand, another item of furniture may be considered an antique, with a very high value. There is no single formula or method for determining fair market value, and all the facts and circumstances must be taken into consideration.
Cost
The cost of the item you donate may be a top-notch indication of its fair market value if you purchased the item close to the valuation date in an “arm’s length” transaction in an open market, and the market value has not changed between the time you purchased the item and the valuation date (when you donate the item). The best evidence of any change in the market value is based on actual transactions that have taken place for the same or similar items in the market.
If there were any conditions that applied when you purchased the item, such as restrictions, covenants, or understandings, that limit what can be done with the property, and that therefore influenced the trace, these conditions should be taken into consideration in determining the fair market value.
The rate of increase or decrease in an item’s value is generally assumed to be at a reasonable rate, unless you can demonstrate that there were unusual circumstances. General price trends, costs of materials, commodity prices, and bidding prices at auctions are some of the indices that can be considered.
Sales of Comparable Properties
The sales prices of other properties that are similar or comparable to the property you donate can be important in determining gorgeous market value. The degree of influence these sales prices have on the fair market value of the donated property depends on the degree of similarity of the property, the timing of the sale (whether it was close to the valuation date), whether the sale was an arm’s length transaction, and the conditions prevalent in the market at the time of the sale (whether selling prices were unusually high or low).
Replacement Cost
Replacement cost as an indicator of fair market value depends on the supply and put a question to for the donated property. In order to use replacement cost as the value, there must be a reasonable relationship between the replacement cost and the going price of the property in the market.
If you donate mature property, its “replacement cost new” may be a starting point, from which depreciation and obsolescence can be subtracted for the period you held the property, in order to resolve its new fair market value. You should be able to demonstrate how you certain the replacement cost new, and the relationship between the depreciated value and the fair market value.
Expert Opinions
The weight of expert opinions in determining gorgeous market value will depend on the expert’s knowledge and competence, and the thoroughness of the expert’s appraisal. The opinion must be supported by facts and experience.
Past and Future Events
The fair market value of donated property must be based on facts and circumstances that are presently known or that can be reasonably expected. You cannot base the value on unexpected future events that could occur after you donate the property, and that may increase its value.
You cannot rely too heavily on past events either. For example, if you donate property that generated considerable earnings for a period of time, that period may not necessarily represent the unique income-generating capacity of the property. It may be more relevant to evaluate the trend in the property’s income generation up until the valuation date.
Valuation of Different Types of Property
Based on the above discussion, different factors and criteria will enter into the determination of aesthetic market value, depending on the type of property. There are guidelines that can be followed, as well as specific rules in clear cases, regarding the documentation you will need to benefit the amount of the deduction you claim. These rules are generally based on the amount of the deduction and the type of property.
Household and Personal Items
The fair market value of used household or personal items you donate is generally mighty less than the trace you paid when those items were new. You should generally use the price that the item would sell for at a garage sale, flea market, or in a thrift store. The Salvation Army has a useful valuation guide for many of these items, including traditional appliances and clothing, on its website at www.salvationarmyusa.org.
Jewelry, Paintings, Antiques, and Objects of Art
The fair market value of jewelry and gems, due to their specialized nature, will almost always need to be determined by a jewelry appraiser. A deduction of $5,000 or more for the donation of a painting, antique, or work of art, must be supported by a written appraisal from a qualified and reputable source. If you claim a deduction for the donation of a work of art valued at more than $20,000, you must achieve a complete copy of a signed appraisal to your tax return. For individual items valued at $20,000 or more, you may also be required to provide a photograph of the item.
Collections
Some of the most well-liked donations of hobby collections include stamps and coins, books, manuscripts, autographs, sports and other memorabilia. The criteria to be applied in determining the fair market value will depend on the overall value of the collection. If the value is vital, an appraisal will most likely be needed. In other cases, you may be able to set aside the value by consulting reference material oriented toward the type of collection being donated. This could include catalogs, dealers’ price lists, and specialized hobby periodicals.
Cars, Boats, and Aircraft
The beautiful market value of a car that you donate will depend on the year, make, model, installed equipment, and general mechanical condition. While for tax purposes, the fair market value is not necessarily the same as the “Blue Book” value, you may be able to use the blue book value as a guide in determining the fair market value. You can look up blue book values in the “Kelly Blue Book” website at www.kbb.com. Prices you find in Internet sites, including bids in auction sites, may also be useful in determining the fair market value.
The American Jobs Creation Act of 2004 changed the rules for the amount you can deduct for the donation of motor vehicles, boats, and planes after December 31, 2004. After that date, if the claimed value is over $500, the amount you can deduct depends on what the charitable organization does with the vehicle, boat, or plane:
1. If the charity sells the vehicle, without any significant intervening exercise or material improvement, your deduction is limited to the dismal proceeds from the sale.
2. If the charity intends to make significant intervening use, or materially improve the vehicle, your deduction is the vehicle’s fair market value at the time of the donation.
You will need to get a written acknowledgement from the charitable organization and attach it to your tax return. This acknowledgement must include your name and taxpayer identification number, the vehicle identification number, and a statement indicating what the charity intends to do with the vehicle. This statement must certify one of the following:
· The vehicle was sold in an arm’s length transaction. In this case it must indicate the gross proceeds from the sale.
· The charity intends to use the vehicle. The statement must indicate the intended use, the duration of that use, and an affirmation that it will not sell the vehicle before completion of the intended use.
· The charity intends to make a material improvement to the vehicle. The statement must indicate what improvement the charity intends to make, and that the vehicle will not be sold before the improvement is completed.
You must score this acknowledgement within 30 days from the date of sale, if the vehicle is sold, or within 30 days from the date of the contribution, if the charity intends to use the vehicle or make material improvements.
Securities
Where there is an active securities market, such as a stock exchange or over-the-counter market, the glorious market value of stocks, bonds, or other securities would be the average of the highest and lowest selling prices on the valuation date.
If there were no sales on the valuation date, you would take the average of the highest and lowest selling prices on the nearest date both before and after the valuation date, and then weight these averages in inverse order based on the number of trading days between the selling date and the valuation date. For example, if you donate stock that was not selling on the valuation date, and:
· The stock traded 3 days before you donated the stock, at an average price of $4, and
· The stock traded 2 days after you donated the stock, at an average price of $6, then
· The value assigned to the stock would be: (($4 x 2 days) + ($6 x 3 days)) / 5 days = $5.20
If the securities are traded on more than one exchange, their value is distinct based on the prices of the exchange on which they are principally dealt.
If there were no sales within a reasonable period before or after the valuation date, the shapely market value of the donated securities is the average price between the bona fide bid and asked prices on the valuation date.
If prices are not available, or if you are donating shares in a closely-held corporation, you would need to consider various different factors in determining their splendid market value. For bonds, you would consider the soundness of the debt obligation, the interest yield, and the date of maturity, among others. For stock you would consider the company’s net worth, potential future earning power, dividend-paying capacity, the goodwill of the business, the general economic outlook for the company’s industry, its management, and the value of stock of companies engaged in a similar business. You should request any necessary assistance in determining the company’s value from accountants, appraisers, engineers, and other technical experts as necessary, and you should keep all the financial records, reports, and other information used in determining the elegant market value.
Interest In A Business
Determining the fair market value of the donation of an interest in a business would be similar to determining the value of shares in a closely-held company. The dazzling market value would generally be what a willing buyer would pay a willing seller for that interest. Factors to be taken into consideration include the fair market value of the assets in the business, the earning capacity of the business, based on past and original results, and the business’s goodwill. Reports and appraisals should be obtained from technical experts, as applicable. CPA firms and legal firms can help with business valuations. There are also organizations and associations of appraisers and valuation analysts on the Internet that can provide more information or refer you to qualified experts.
Real Estate
Donations of real property normally require a professional appraiser to determine the fair market. The appraisal report should include a complete description of the property, physical features and condition, the use that is being made of the property, zoning restrictions and permitted uses, and the potential for other types of use.
There are three main approaches that are generally used for appraising real estate:
1. Comparable sales
2. Capitalization of income
3. Replacement cost new or reproduction cost minus observed depreciation
Comparable Sales
Under this method, the donated property is compared with other similar properties that have been sold. The selling prices of these other properties are then adjusted for differences in market value since the date of sale, and differences in the size, location and condition of the properties, to determine the estimated fair market value of the donated property. Only the properties with the least amount of adjustments should be taken into consideration.
The appraiser should document each adjustment, and the appraisal should include the names of the buyers and sellers of the comparable properties, the deed book and page on which the sales are recorded, the date of sale and the price, a description of the property, the amount and the terms of any mortgages on the properties, property surveys, the tax assessed value of the properties, and the pleasing market value of each property according to the appraiser.
Capitalization of Income
Under this method, the property’s fair market value is based on future earnings from the property. Future gather income is capitalized at a rate that would represent a aesthetic return on the investment, depending on the risks and other factors involved.
Replacement Cost
This method generally sets the upper limit for the magnificent market value of the property, especially during periods of rising prices, and is normally feeble in combination with one of the other methods, to corroborate the fair market value determined. For improved realty, the land and buildings or attachments must be valued separately.
The replacement cost takes into account the types of materials, level of workmanship, and the square feet of constructed space. The cost includes materials, labor, overhead and profit. Once this replacement cost is determined, it must be adjusted for factors that apply to the property that is actually being donated, such as physical deterioration of the building, and functional or economic obsolescence.
Intellectual Property
According to the American Jobs Creation Act of 2004, the initial deduction for donations of patents or other intellectual property, such as copyrights, trademarks, software, and similar property, is limited to the donor’s basis in the property (what the donor spent to create the property), or the fair market value, whichever is lower. Subsequent charitable deductions can be taken for up to 12 years, based on a percentage of the income the charitable organization receives from the property. The percentage starts at 100% the first year and is gradually reduced to 10% in the twelfth year. In order to qualify for the additional deductions, the donor has to lisp the charitable organization, at the time of the donation, of the donor’s blueprint to take the additional deductions.
Appraisals
If you donate property and claim a tax deduction of $5,000 or less, you generally do not need an appraisal. You can get an appraisal if you need one to determine the value of the donated property, but you will generally not be required to have an appraisal for tax purposes. The fees you pay to catch an appraisal are deductible as an itemized miscellaneous deduction on Schedule A, subject to the 2% of adjusted gross income limit.
If you are claiming a charitable donation deduction of more than $5,000 for a single item or a group of similar items, you must get a qualified appraisal and attach Form 8283, Noncash Charitable Contributions, to your tax return.
There are certain exceptions, and you do not need to have an appraisal for:
· Non-publicly traded stock with a value of $10,000 or less,
· Certain publicly traded securities,
· A car, boat, or aircraft donated after December 31, 2004, if your deduction is for the gross proceeds from the sale by the receiving charitable organization,
· Qualified shining property, such as patents and copyrights, donated after June 3, 2004,
· Inventory or stock in trade donated after June 3, 2004.
Even though you do not need an appraisal for the kinds of donations that qualify as exceptions, you will still need to complete and file Form 8283, except in the case of sure publicly traded securities, as follows.
You do not need an appraisal, and you do not have to file Form 8283 for donations of publicly traded securities that are:
· Listed on a stock exchange, with quotations published daily,
· Regularly traded in national or regional over-the-counter markets, also with quotations published daily, or
· Shares of open-end investment companies, such as mutual funds, if quotations are published daily in a newspaper with national circulation.
IRS Review of Appraisals
The Internal Revenue Service is not bound by the thought of a qualified appraiser. If the IRS reviews your tax return, it may accept the amount of your charitable deduction based on the appraised value of the property, or it may make its own determination of the property’s fair market value. The IRS can review appraisals, and may refer the matter to a specialist appraiser. But it is your responsibility to adequately support the fair market value of the donated property as claimed on your return.
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Filed under Knowledge Base Software by on Sep 15th, 2011. Comment.