| June |

6/4/06 Many taxpayers file "protect" estimates based on their prior year's tax liabilities. If you do not expect to owe as much tax this year, though, it may make sense to reduce your quarterly payments and run the risk of incurring penalties, which may not be significant. You may want to review this issue with your tax advisor.

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| May |

5/28/06 If you are required to file a 2005 declaration of estimated tax, your second payment will be due on June 15th. You will be protected from penalties if the total you pay is based on at least 100% of your 2004 tax (110% if your 2004 Adjusted Gross Income exceeded $150,000), or 90% of your 2005 tax as ultimately determined.

5/21/06 Because of recent changes which provide greater flexibility and more opportunity for post-mortem tax planning, we strongly recommend that you make sure that your "beneficiary designations" on IRAs and Roth IRAs, retirement plans and insurance policies are appropriate. You should discuss these issues with your tax advisor.

5/14/06 Interest on auto and appliance loans, and tax deficiencies, is nondeductible "consumer interest." It is usually a good idea to payoff this debt if you can. Student loan interest is generally consumer interest also, but a limited above-the-line deduction is available to eligible taxpayers.

5/7/06 For 2006, the maximum 401 (k) or Roth 401 (k) contribution limit has been increased from $14,000 to $15,000. In addition, if you are 55 years of age or older, you can make an additional "catch-up" contribution of up to $5,000. If your company's plan permits, you may split your contribution between the traditional and Roth vehicles.

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| April |

4/30/06 If your company has set up a Roth feature in its 401 (k) plan, you are eligible to contribute even if your income is too high for you to contribute to a Roth IRA. The rules are similar, but there are some differences between Roth 401 (k)s and Roth IRAs. Brown Smith Wallace has prepared an alert summarizing the rules, which you can get by contacting our office.

4/23/06 A full or partial Roth IRA conversion is still a viable option for many taxpayers. You would pay tax on the value of the converted securities when you file your 2006 return. If the securities subsequently drop in value, you can use the "re-characterization" technique to reverse the conversion and reduce or eliminate the tax cost.

4/16/06 We encourage you to think about whether, and to what extent, to use the Roth IRA technique, and to consider converting at least part of your traditional IRA, if you are eligible. Especially given low current tax rates, we suggest that the Roth may outperform a traditional IRA over the long term.

4/9/06 Even if you haven't finished doing your 2005 taxes, it's not too early to start thinking about tax planning for 2006. Important planning issues include structuring your family's affairs to take advantage of the 5% and 15% rates for dividends and capital gains, and possible application of the Alternative Minimum Tax.

4/2/06 If you are required to file a 2006 declaration of estimated tax, your first payment will be due on April 15th. You will be protected from penalties if the total you pay is based on at least 100% of your 2005 tax (110% if your 2005 Adjusted Gross Income exceeded $150,000), or 90% of your 2006 tax as ultimately determined.

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| March |

3/26/06 If you can't finish and file your return by the April 15th due date, you should get an extension to avoid late filing penalties. You should also calculate and add your first quarter estimated tax liability, if any. Even if you are getting an extension, you still may incur interest and penalties if you have underestimated, or haven't fully paid the tax.

3/19/06 Brown Smith Wallace has prepared an alert summarizing the rules relating to dividends and capital gain distributions from mutual funds, sale of mutual fund interests and related matters, which have been affected by recent law changes. You can get a copy of the alert by contacting our office.

3/12/06 You have until April 15th to make your traditional or Roth IRA contribution for 2005. The maximum basic IRA contribution limit is $4,000 per participant. If you are 55 years of age or older, you can make an additional "catch-up" contribution of up to $500 for 2005 and $1,000 for 2006.

3/5/06 The tax law passed last year provides new tax breaks for a variety of energy-saving improvements to your home or business, or purchase of a qualifying vehicle. Brown Smith Wallace has prepared an alert summarizing the rules, which you can get by contacting our office.

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| February |

2/26/06 The Hope Credit, for the first two years of college, reduces Federal income taxes by up to $1,500 per qualifying student for 2005, and $1,650 for 2006. The Lifetime Learning Credit, available for other qualifying education, can be as much as $2,000 per taxpayer, so for many families the LLC is a better deal. You should review the issues if you have family members in college.

2/19/06 For 2006, the gift tax annual exclusion has been adjusted for inflation, and increased from $11,000 to $12,000 per donee A married couple can make split gifts of up to $24,000 per donee without using any of their lifetime exemptions.

2/12/06 If you are over 70 ½, you can now calculate the amount of required distributions from IRAs and retirement plans. You may choose to take your 2006 required distributions early this year, so that future appreciation will not be trapped in the IRA or plan and subsequently taxed.

2/5/06 The Missouri MO$T 529 plan has replaced TIAA-CREF as the plan's investment manager. The variety of investments offered by the plan has been greatly expanded. Participants should review their investment strategies, and Missouri residents participating in plans of other states should consider using MO$T to obtain Missouri tax deductions.

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| January |

1/29/06 If you deduct expenses for business use of your auto, you will need to keep track of your total mileage as well as specific business use. For 2005, the optional allowance was $0.405 through August, and $0.485 after September 1. It drops to $0.445 for 2006. We recommend that you record your odometer reading periodically to help document your deduction.

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