Dear Family,

Monday is a day off. It's always such a treat to get that break from work. Or school. Doesn't it seem that there just aren't enough of them?

Please, as you enjoy your long weekend, your barbecue, your time with family and friends - remember, it's all made possible by those brave men and women who have ever served in our country's armed forces.

This is also a good time to remind you that IRS has a special resource page for folks in the Armed Services. If you know someone who needs help - please point them to it. And remember, TaxMama, or one of the TaxMama Pros, is always happy to help.

This week, I had an interesting conversation with a client. She was trying to work out the numbers on buying a home. Even with nearly $150,000 in income, and with potential interest rates as low as 5.5%, it was very hard to justify spending $600,000 on a tiny, two-bedroom fixer- upper.

Living in California, in any desirable area (meaning, no gangs in the streets), has become outrageously expensive. Just the property taxes alone on a house like that would be around $625 per month! Think about adding in a mortgage, insurance and a gardener...and suddenly $150,000 doesn't go very far anymore, does it?

I'm sure this scenario is similar in any heavily populated, desirable urban area.

There ARE alternatives, even in California. While we were chatting, I was searching the Multiple Listing Service feed on a Realtor's (tm) website. There were several multi-unit properties available (duplexes, four-plexes, etc.). If you can handle being a landlord (or having a roommate) that just might be the way for you to buy a property you can afford.

Run the numbers and you might discover that with three units or a roommate, you'll even turn a profit. Regardless, fix up the property, you can raise the rents, cover all your costs. Then either sell it at a healthy profit - or live there with a nice cash flow.

See, even in today's market, there's still a way to invest in real estate without straining your pocketbook.

And speaking about a strain your finances, today's Tax Quip is about someone who hasn't filed a tax return in 8 years - Tune in here.

Please sign up to get them each morning - here. We'll start sending out daily Tax Quips on Tuesday.

Time for me to go. What should you do this weekend? If you see a stranger in need of help or directions - offer it without being asked.

Best wishes,
Eva Rosenberg, EA
Your TaxMama is watching...out for you.

President Bush and Social Security
If you want to express your own opinion on Social Security to President Bush and your legislator's, please feel free to use the link at the bottom of this letter.