tv CNN Newsroom CNN March 4, 2012 5:00pm-6:00pm EST
events. pretty busy week for everybody. watch the cnn election round table as well. a live insider chat comes super tuesday, march 6th, at 12:00 eastern time. not just on the television set, but this special program on cnn.com. wolf blitzer and cnn's political team will dive into the day's implications for the presidential race. go to cnn.com/roundtable for that. thanks so much for tuning into this special hour of politics. join us every sunday at 4:00 eastern time. now stay right here for the latest news in the "newsroom." iran's nuclear program, rising gas prices and the topic of war get president barack obama talking tough. >> iran's leaders should understand i do not have a policy of containment. i have a policy to prevent iran from obtaining a nuclear weapon. >> and your personal finances, if you write off business
dinners on your taxes, might it increase your chance of an audit? eight audit tips to avoid here in the cnn newsroom. a busy painful day of cleanup as survivors of a deadly storm system battle grief and immense piles of rubble. some are seeing their devastated towns for the first time. others are still being kept away. the number of people killed in this storm now stands at 38. the national guard is helping with the cleanup and providing security patrols in at least four of the hardest hit states. we'll have live coverage in just a moment. another community reeling, still, from loss right now, one of three students killed during that ohio high school shooting was laid to rest yesterday. more than a thousand people gathered to say good-bye to 16-year-old daniel parmertor. the families of parmertor and another shooting victim donated the boy's organs.
their decision helped 16 sick people. president obama reiterates diplomacy is the way to go in trying to resolve the deepening nuclear standoff with iran. but in his remarks before the largest american jewish lobbying group today, he said, quote, all elements of american power including military action are on the table. in selma, alabama, now, a huge crowd is re-creating the 1965 civil rights protest that you see right here. they are walking across edmund pettis bridge to commemorate the day known as bloody sunday. that was when alabama state troopers and local deputies attacked civil rights marchers. vladimir putin declares victory today, telling his supporters, quote, we have won. unofficial exit polls show putin with more than 64% of the vote. his closest competitor received less than 20%. stay right here, we're live from moscow in just a few minutes.
let's get back now to our coverage of community struggling after being hit last week by a deadly storm system. ♪ ♪ amazing grace how sweet the sound ♪ >> prayer in henriville, indiana, as survivors head to church amid the devastation. parishioners are giving thanks. >> thank you for our community. thank you for our loved ones. thank you for these hands that we hold every week as we seek your direction and will. god, thank you that you supply not only our physical needs, but emotional and spiritual needs. >> let's head now to west liberty, kentucky, a town so devastated, the town center is still closed to all but rescue crews. jim spelman was able to get a brief tour of the destruction
jim described for us what recovery teams were able to do. >> reporter: we're here right in the heart of west liberty, kentucky, right now you. these crews are still hard at work trying to clear debris, get some semblance of order back. take a look at this. this is a stained glass window. this stained glass window came out of this now pile of rubble one time church. this is the scene all throughout this town. this is what some people on the outskirts of town are able to come back and this is what they're finding in their own homes. i was able to catch up earlier today with a woman named doris scheck who survived the tornado in her own basement. take a look. >> i was standing in my basement and i looked through the back window and i saw a tree just lift up and go up in the sky and that's when i realized it is really going to hit here. and i just got down on my knees and took shelter and just -- the noise was loud. you could hear the cracking of the wood and the glass breaking
and just was -- just very horrific, i guess, would be the word. >> how does it feel to come back now and see your house not only your house gone, but to see the area that you managed to survive in, so many cinder blocks, dangerous objects around, how does that feel? >> well, i feel blessed. >> so with destruction like this throughout this community, fredricka, will be weeks if not months before people are getting back into town, longer before they can really rebuild this community. fred? >> thanks so much, jim spelman there from kentucky. so one of the big concerns for survivors right now there was this clashing of hot and cold air, then a tornado, and now it looks like yet another cold snap is on the way. jacqui jeras with us now. this typically is the way it goes oftentimes, right? >> yeah, a lot of times we'll have a lot of cold air come in
after a system like that because that is that clash that you were talking about. and this is the aftermath. this is a weak clipper system and this is not a major storm. it is not going to bring severe thunderstorms, but unfortunately, it is bringing in a little bit of light snow and that kind of complicates things, even with some of this rain, because anything that is unprotected at this point is going to get wet and could sustain some further damage. a lot of what you're seeing here on the radar picture, across the great lakes and ohio valley, that's just very, very light spotty, light rain and showers. it is the clipper system you see toward st. louis that is moving in and that will be bringing in a little bit more significant rain and snow. accumulations should stay relatively light. we could see a couple of inches say in eastern parts of kentucky. west liberty, where jim was, could get as much as 1 to 3 inches. that's something we'll be watching very closely. and temperatures tonight dropping down below freezing, so even though some people are in their homes, there are people that can live in their homes that don't have power, fredricka. that's the concern that folks are going to be real cold
tonight in dealing with this wet weather. >> pretty miserable stuff. thanks so much. appreciate that. michele bachmann may no longer be in the thick of the presidential race, but she isn't out, completely. she does have some strong opinions still. coming up, what she says her role is now, her thoughts on rush limbaugh's controversial comments to a coed and what about an endorsement? and prince harry hits the road. it is his first test as royal ambassador. i want to fix up old houses. ♪ [ woman ] when i grow up, i want to take him on his first flight. i want to run a marathon. i'm going to own my own restaurant. when i grow up, i'm going to start a band. [ female announcer ] at aarp we believe you're never done growing. thanks, mom. i just want to get my car back. [ female announcer ] discover what's next in your life. get this free travel bag when you join at aarp.org/jointoday.
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♪ ...as it is being there. ♪ [ birds chirping ] away is where the days are packed with wonder... ♪ [ wind whistles ] ...and the evenings are filled with familiar comforts. find your away. for a dealer and the rv that's right for you, visit gorving.com. president obama says the united states is committed to standing by israel. he talked to the largest american jewish lobbying group today amid concern from israel about where the u.s. stands on threats from iran. the president said while he prefers peace, military action remains on the table. >> there are, of course, no guarantees that the iranian regime will make the right choice.
but both israel and the united states have an interest in seeing this challenge resolved diplomatically. after all, the only way to truly solve this problem is for the iranian government to make a decision to forsake nuclear weapons. >> so iran is sure to dominate talks tomorrow between president obama and israeli prime minister benjamin netanyahu. the two are meeting in washington. joining me now to talk about iran's nuclear ambitions and what it will take to stop tehran is security analyst jim wall, joining me now from watertown, massachusetts. good to see you, jim. >> always good to see you, fredricka. >> what is the urgency with iran right now? remind us where that country is as it relates to nuclear advancements. >> sure. and i think there is often a lot of excited talk about iran, but this is a program that is now more than 25 years old, and it has been a slow progress, sort of two steps forward, one step
back, and it made progress and it is now building -- built thousands of centrifuges, but we get quarterly reports from the iaea, the international atomic energy agency, every three months. and they aren't living up to their own boasts, their own announcements about how great the program is, but it is making progress. i think the concern for israeli leaders and american policymakers is the ford facility, an underground facility, and if they -- they have centrifuges there, that would be hard to get at with a military attack. and that makes some people nervous. and the fact they have 20% enrichment. can't make a bomb really functionally with 20% enriched uranium but it is getting you closer down that path. there is still some distance here. north korea has nuclear weapons or had a nuclear test. iran is not there yet but people don't want them to get any closer than they already are. >> so when israel's shim on pers
says they must be stopped, but president obama also underscores that sanctions helped isolate iran, is shimon peres setting the stage for some preemptive action? >> yeah, i think -- well, he said several things in that speech including the fact that he believes that the u.s. and israel have the same goal here, which is to make sure this iran does not get nuclear weapons. the real decisionmakers here are not going to be peres, it is going to be netanyahu, the prime minister, and his defense minister, and ehud barak, they're the ones who are rumored to be considering a military strike. but the u.s. has made it clear that a military strike is not welcome. that was actually a centerpiece of what president obama said today and the clip that you played i think was really the key clip. he said we have to work primarily, firstly, through diplomacy, and then leave military action as a last resort, because history shows that the best way to stop countries from obtaining nuclear weapons is for themselves to
conto the cco come to the conclusion this is a bad idea. that's the best guarantee we have to prevent iran from going down the path toward nuclear weapons. if we strike them and israel also suggests this, if we strike them, that may be the thing that leads to them becoming a nuclear weapon state, for them deciding to become a nuclear weapon state, something that our intelligence community says has not yet been decided. >> i wonder do we hear both messages coming from today's apec meeting or opening in that conference that while the president says diplomacy is the first thing to push and that there is still room for diplomacy, at the same time, that he said the u.s. would not hesitate to defend itself, is that any kind of inference that, you know, iran is in a position to strike israel or perhaps even strike the u.s.? >> yeah, i don't think yet. not yet, fredricka. and that's not going to be true for some time. remember, israel has the biggest military in the region, qualitatively and quantitatively the biggest military.
as president obama pointed out in his speech, they have engaged in joint exercises, we have made military transfers there. this is more a message to iran, it is part good cop/bad cop, bad cop putting pressure on them, sanctions, threat -- letting them know that no options are off the table, but trying to focus on diplomacy, because as the president said, in the end, historically, case after case, libya, south africa, all the other kun there's a started down that path, the way you get countries to stay away from nuclear weapons is you decide this is not in their interests, that they have more to use than to gain by that. that is going to continue to be the focus, i think. >> jim walsh, thanks so much, from watertown, massachusetts, a chance to visit your beautiful campus of mit recently, sorry i didn't get a chance to see you while i was there. next time i'll have to stay there longer. jim walsh, thanks so much. much more after this. drink? how do you plan to keep up drinking that girly --
it is day three of prince harry's overseas trip, celebrating his grandmother's diamond jubilee. first stop was belize. now he arrived in the bahamas. we have been following his goodwill trip to countries once ruled by great britain. anyone who gets to cover this one, quite the boondoggle because all the cool, beautiful, tropical places that harry gets to see and they're really rolling out the welcome mat for him, aren't they? >> the excitement is palpable. and he's trying to shed his image of the playboy prince he is a serious person also. he's seen action in afghanistan. he is an apache pilot who just got his certification. but he has this image that has
been following him from his youth, you know, these london nightclubs, partying with celebrities that he's the playboy prince. this is the first time the queen is trust him to go and represent her solo, by himself, in those caribbean nations. so far he's done very well, even though in belize they tried to have him drink a lot of rum in the street. >> they were trying to -- >> he did very well. he danced. he drank, but -- >> the party image. >> but today, in the bahamas, he went to church, he gave a speech, but he also has a lot of fans, ladies really like him. for example, miss bahama went there, she's smitten with him, said she wants to marry him. no response so far. >> he doesn't want to make any commitments? >> not yet. >> not on grandmama's diamond jubilee. how long does this go on? >> it is months. it is a whole year of diamond jubilee celebrations. the royals will be fanning out across 12 nations, representing
the queen. the queen stays within great britain -- >> not big on traveling long distances right now. >> well, she's 85. some say this is part of a strategy for -- >> what do you mean? >> celebrating the past, but also introducing her successors. this is a huge thing. she's only the second monarch that britain has had that has reached this milestone, 60 years in power. but last one to reach that milestone was her great, great grandmother, queen victoria, another woman. >> she probably wants to maintain some stamina because she will be the grand dam during the london games, right around the corner. >> right. she's 85 years old, yeah, yeah. >> everyone looking forward to that too. well, it has been fun traveling with prince harry vicariously this way, seeing the beautiful places and seeing how they love him. >> stunning. if you saw him climb up that mayan temple when he was in belize, so beautiful, i wanted to be there. >> maybe next time. >> maybe next time. >> other nations to tour. >> absolutely. >> put your dibs in now for those credentials. thanks so much.
the biggest voting contest of the primary season is just two days away. super tuesday, a battle in ten states with hundreds of rendell ga republican delegates at stake. this is an incredible day. there is a lot at stake. we're talking about 416 delegates, ten states, each candidate working very hard for the most pivotal state such as
ohio and georgia which has the most delegates to a state up for grabs, right? >> up for grabs. they all have a different strategy about what they will determine what is success on super tuesday. in fact, let's look at three polls for three states we're looking at very quickly. let's look at ohio. extremely important state. rust belt state, very important in the general election. seen as a state that mitt romney needs to do well in. let's go down south and look at tennessee right now. we heard a lot from newt gingrich saying he would do well in tennessee. he's ceded that a little bit. look at the numbers right there. rick santorum and mitt romney fighting for tennessee. where we sit here in georgia, which is really the make or break state for newt gingrich, newt gingrich now is doing very well in that latest poll. >> does this mean newt gingrich has the most to lose if he doesn't do well, particularly in the southern states? because while he's banking on georgia, he's also kind of banking on the other southern neighbors too. >> he is. he's talked about tennessee,
he's talked about oklahoma. he's playing a southern strategy. the fact of the matter is newt gingrich said he has to win georgia in order for his campaign to show viability. he's also kind of downgraded the fact that rick santorum has done well in states like michigan as we saw last week and is polling well now. >> why is that? >> he's not doing well up there and rick santorum does very well in these rust belt states. and that's where newt gingrich and rick santorum are fighting for the conservative vote, but what it comes down to is we'll be looking to see what mitt romney does up in ohio because if he's able to win ohio, he might be able to put the naysayers to sleep, so to speak, and say he's the inevitable nominee for the republican nomination. >> the argument has been about who is the most authentic, the most conservative. when you have virginia's eric cantor coming out today, and saying i'm throwing my support now behind mitt romney, that really would seem to kind of shake things up because the conservative movement, the party as a whole has been extremely reluctant to throw its support behind romney. is this an opening?
why would cantor step out like that and might there be a domino effect to end up helping romney? >> potentially. it wasn't a big leap for eric cantor to come out for mitt romney for this reason and this reason alone. mitt romney and ron paul are the only two candidates that will appear on the ballot in virginia, which is -- which will have a lot of delegates at stake. >> registration problem there. >> rick santorum and newt gingrich weren't able to get on the ballot. eric cantor has a little cover. he did come out for mitt romney today. you hear this from the republican establishment, conservative republican establishment saying we need to get behind one candidate, we need to start preparing for november. >> incredible. it is going to be an exciting day on tuesday. mark preston, thanks so much. appreciate that. super tuesday, march 6th, 12:00 eastern time. if you're not in front of the television set, you do want to check out cnn.com. wolf blitzer will be there hoef hosting the cnn election round table on cnn.com. it is a live insider chat about the day's implications for the
presidential race. go to cnn.com/roundtable for that. foreign policy was a big focus of the sunday morning talk shows. u.s., israel relations, president obama's apology over the koran burning in afghanistan, so here are some of the highlights. >> do you doubt the president or the united states' commitment to israel? >> of course. >> why? >> the president's new budget, which cuts aid to israel for its ballistic missile defense shield, you had no evidence that the president prepared to take steps to stop iran from getting nuclear weapons. they talk and the iranians build. they talk and the iranians build. we're being played for fools. >> i don't want to interfere with what they need to do for their defense and i don't want to interfere with israel when they want to have peace treaties. if i were forced to, i would give my personal opinion about it, i would say, you know, doesn't make any sense to bomb a
country that is no threat to anybody. >> no one should doubt the president's resolve, not just because of the security of israel, but because of the security of the united states of america. it is important that iran not get a nuclear weapon. ♪ >> thank you! >> i think the president was totally wrong as commander in chief to apologize to religious fanatics while our young men are being killed in afghanistan and i think it was a disaster of an apology. >> i think the president was wrong to apologize for the accidental burning of the koran in afghanistan? >> no, i don't think it was wrong, but it is pretty much irrelevant, but i think the republicans who are condemning it are a little bit over the top too. >> the commanders on the ground felt that a high level apology was warranted and necessary for the security of those troops and the president acted on their recommendation. >> mitt romney is the only
candidate in the race who put forward a bold pro growth, pro jobs plan for the future. and i'm here today to tell you that i'm endorsing mitt romney in his candidacy for the presidency of the united states. >> meeting and surpassing all audience expectations. >> can you tell me what you think of rush limbaugh in this whole case? >> i think he's indicated himself, he made a mistake, and i think he did the right thing. >> i would say he used a very crude language and i think he gets over the top at times. but it is in his best interests. that's why he did it. i don't think he's very apologetic. he's doing it because some people were taking theired aer have tadvertisements off his program. >> i know he apologized. i doubt his sincerity given he lost six advertisers. >> the centers for disease control say 99% of women in this country between the ages of 15 and 44 who have had sexual
activity and this includes catholic women, they say that 99% of them at some point in their lives have used artificial birth control. are you saying all those women have done something wrong? >> i'm reflecting the views of the church that i believe in. used to be tolerant of those beliefs. i guess now when you have beliefs that are consistent with the church, you're out of the mainstream and that, to me, is a pretty sad situation where you can't have personal held beliefs. >> michele bachmann isn't saying who she'll endorse now that she has suspended her presidential campaign. she told me she wants to wait until after super tuesday to say who she'll back. during my conversation with her, michele bachmann said her goal now is to unite the party. i also asked her about conservative radio talk show host rush limbaugh's offensive comments about a coed. does his language taint the conservative movement or
republican party? >> the republican party isn't tarnished at all. the republican party is amplifying the voice that says one person, one health care dictator should not be telling all americans what we can and cannot do in health care. that's the problem with obama care. and that's why it has to be repealed, because i want to return to every woman and every man in the united states the freedom to be able to make their own health care decisions. that's what this obama care -- >> do you support what the georgetown student was saying, even as a student that she should be able to have access to birth control? in the manner in which she was speaking on capitol hill? >> well, that's exactly my point. i want every individual to be able to have their access to health care. and their decision-making power to health care. that's exactly what obama care takes away from women across the united states. >> all right, congresswoman
michele bachmann earlier today. kentucky's first responders and national guard troops are clearing tornado debris right now. up next, the governor of kentucky tells us what other help storm victims are getting. [ jane ] how did i get here? with determination. courage. and all the points i earned with my citi thankyou card. [ male announcer ] the citi thankyou card. redeem points for travel on any airline with no blackout dates.
a look at our top stories now from indiana to georgia. millions of people are dealing with the aftermath of tornadoes and that big killer storm system. the national guard is helping with the cleanup and providing security patrols in at least four states. 38 people died in that outbreak. many lost their homes and are living in shelters as well. and they could be facing cold temperatures tonight. jacqui jeras will be joining us with more on that. right now, kentucky governor steve bichir is joining me now on the phone. mr. governor, our hearts go out to you because your state suffered the most deaths of all of those killed during these couple of days of storms. what is the greatest need for you right now? >> well, right now we are moving from a search and rescue part of the operation. we finished that now and unfortunately at least today we had 21 fatalities from the storm.
and more than 300 injuries. but work now going to be moving into a recovery cleanup and damage assessment mode to get our people back on their feet. we may be down here in kentucky, but we're not out. our people are resilient. they pull together. and we're going to get through this. >> governor, the cleanup seems undaunting. i don't know where you begin and where you put all that debris. but first and foremost, people need a place to stay. do you have enough shelters? do you have enough of that kind of emergency response for the many survivors who are displaced? >> yes, we do. fortunately we knew the storms were coming. and they were being tracked, but even before they entered kentucky. and so we had communicated with all our local emergency management folks and everybody was ready, as ready as you can be, for an overwhelming situation like this. and so as soon as these storms passed, all of our folks were in
there, and in a coordinated effort. we opened shelters. we have food and water and all of the things, those kinds of necessities that are needed. we are on top of that kind of situation. we had one town that was just almost destroyed. it looks election a bomb dropped right in the middle of town. and another area somewhat like that and so it is going to take a while for us to rebuild, but we're going to take care of our folks and we're going to rebuild. >> and now with the cold snap on the way, and possibly snow, how does that compound things for you tonight? >> well, obviously we have got to make sure that people are in the shelters. our transportation folks are going to be making sure that the roads are kept clear so that our first responders and emergency people can get back and forth and have access to these areas. but we saw that coming also and red cross and a lot of other volunteer folks work with us, they do a fantastic job and
they're manning these shelters. and everybody who needs a place is going to have one. >> and so national guard troops are on the ground by the hundreds. is that how they are being best utilized by helping to clear that debris, make some of those roads passable? >> yes, they're providing security to make sure that we don't have any looting and i'm happy to say that we really don't have any of that kind of thing going on. it is at a very minimum. they're providing traffic control and debris removal. our national guard, are great folks. they know how to do these things. we have over 400 of them there already. >> okay. kentucky governor steve beshear, thanks so much for your time. and, again, we're wishing you and all those in kentucky who are suffering through so much right now the very best. >> well, we appreciate your thoughts and prayers. >> all right, we're going to talk overseas politics. vladimir putin says he is the
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>> it was a year ago today a killer earthquake, tsunami and nuclear meltdown rocked japan, leaving nearly 16,000 people dead and towns in ru in ruins. japan's prime minister says many lessons will be learned from that devastation. voters in russia overwhelmingly elected vladimir putin back into the office of president today with over half of the votes counted, putin has more than 64%. that's much more than he needed to avoid a runoff. let's talk to cnn's phil black who is live for us now from moscow. so, phil, is this what people expected or are there real surprises? >> well, certainly a very strong showing for a politician who in recent months has been dealing with unprecedented opposition and dissent on the streets of moscow and other cities. tens of thousands of people have
been out regularly protesting against vladimir putin. so i think if you ask his supporters, and he still remains the most popular politician in the country, they're not too surprised by this, but for those who oppose him, who oppose his continued leadership of this country, they firmly believe something is not quite right here and we'll be hearing more about this in the coming days. they firmly believe that there was
>> what a contentious election. thanks so much, phil black, coming to us from moscow. back in this country, home prices and interest rates are plunging in this unstable economy. so is this the best time to buy, sell or rent a house? the answer straight ahead. [ female announcer ] goodnight gluttony,
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we're in an economic recovery. what does it mean if you're looking for a home? christine romens takes a look at whether you should buy, sell or rent in this housing market. >> are we finally seeing the bottom in the housing market? let's get right to the bottom of it. mike ogby is host of hgtv's real estate intervention. would you say it is time to buy, sell or rent in this market? >> you must buy right now. we're never going to see prices as cheap as they are and we're never going to see mortgage money as cheap as you can get it. >> i know, but we have been thinking this for a few months now. years now. home prices couldn't go lower and keep going lower. that's the big fear if you buy a house now, it could be a less expensive house in one or two years. >> well, you know what, i mean, i think that it depends on who the buyer is, christine. if you're an investor and you're someone who is savvy and out in
the marketplace, i think you may have a different viewpoint than someone who is looking to buy a house that they intend to live in. if you intend to live in a house now, you'll get a mortgage interest rate deduction on that house that you're going to live in. i think that what you're going to do is cut your nose off despite your face. say the market continues to drop even through the end of 2012, which it may very well, i know that mortgage rates aren't going to go any cheaper than they are right now. you talk about the gift that keeps on taking, even a quarter point mortgage interest over 30 years, which by the way, right now is about 3.88% on a fixed loan, you'll pay more even if you pay $20,000 or $30,000 less for the house you buy. >> get the moefrt ratrtgage rat need money in the bank and a house you can sell. you can't have a house you can't get rid of. you're right, mortgage rates have never been so low and home prices have -- home sales starting to pick up a little bit. mike, thank you so much. i'm christine romes withans wit
week's "smart is the new rich". here is alison kosik and poppy harlow. >> hi, fredricka. a big headline on wall street this past week was the jump in auto sales. automakers reported their best february in four years with industry wide sales rising almost 16%. chrysler led the pack with a 40% jump, ford, general motors and toyota all posted increases as well. gm says the job market is doing better, credit is easing and consumer confidence is rising. the increase came as a bit of a surprise because gas prices are soaring, but many buyers want more fuel efficient vehicles. poppy harlow has a look at what's coming up in business news now. poppy? >> thanks so much, allison. the february jobs report will be released this coming week. the unemployment rate has been improving and wall street will be looking for that to continue. unemployment is at 8.3% compared to more than 9% just a year ago. also, we're expecting big headlines out of apple. the company is holding an event
in california on wednesday and all bets are that it will release the ipad 3. anticipation of the new device has been helping drive apple stock way up. shares hit a record high of nearly $550 last week. we'll track that and all the business news of the week for you right on cnn money. fred, back to you. >> thanks so much, ladies. tax advice that could help you avoid an audit by the irs. straight ahead, eight tax pitfalls to look out for. the volt's battery has been tested for more than 395,000 hours. ♪ and, most importantly, the volt has received the highest overall vehicle score for safety possible. [ cheers and applause ] the extended-range electric chevy volt. hard to argue with the facts. ♪ my high school science teacher made me what i am today. our science teacher helped us build it. ♪ now i'm a geologist at chevron,
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just over five weeks until your return is due, so what can you do to avoid an irs audit? according to learnvest.com there are eight things that could flag your return. reporting the wrong taxable income. trying to deduct a lavish steak dinner what clients. deducting your car as a business expense when you also take the kids to soccer and run errands and making errors like filing the wrong deduction or math errors. so what are the other four tax audit triggers in alexa, the ceo of learnvest.com laid it all out for me earlier. >> let's say this year you donate, write a check to your alma mater and then lose your job. that ultimately makes sense and you're not really triggering something that seems odd. what does seem odd and where it's not okay let's say you decide to write off your 1995 camry that you donated for
$15,000. large donations like that when you're not making a lot of money really trigger the irs' attention and the take away here is if you're going to donate anything over $500, you're going to need to fill out 230rform 22o substantiate that donation. >> what about your home office? a lot of people work from home and they want to deduct, you know, that workspace from i guess their overall home expenses. how do you do that or can you do that anymore? >> so you can do that, but here is again when it's perfectly okay. let's say you do have a home office where your computer is your office is, all your office supplies, and here is the key. where you do the majority of your work. what does not make a home office is the laptop in the corner of your living room that you work on from time to time. this is really important. this is one the irs pays a lot of attention to. if you have any questions about whether or not you have a home office, check out irs publication 587 on their
website. read through it and they actually have a nifty flowchart that helps walk through a series of request he is to ultimately tell you if you're on the up and up and can claim a home office. >> and then a big red flag is when all of your numbers seem to, you know, look perfectly perfect. there are no cents. everything is dollars. it's all rounded off, but that's a big red flag. i thought maybe you do that just for the sheer idea of convenience. >> yeah. so here is why that's a big red flag. here is when it's perfectly okay. if you're going to round a dollar amount let's say $6,301.25 to just $6,301, that's okay. what's not okay, the irs will pay a lot of attention if all of your numbers are rounded to the nearest hundred or thousand or 50. if everything looks tidy and all your numbers look convenient, they're going to wonder if you just made things up but, two, if you're not keeping good records.
they want you keeping the best records possible. just use the actual numbers and if you need to round to the nearest dollar, that's okay but be careful about rounding other numbers. >> what's this about a business that's losing money? >> so, again, if you have a business and here is when it's okay to claim a business that's losing money. if you have a business that is legally set up as a business where you run it like a business and you intend to be profitable and you happen to have a bad year or two and you're going to claim losses, that's okay. what's not okay is when you have a business that you think of as a business that's not set up as a business that maybe is more of a hobby for you. so let's say fixing antique bicycles or running a small vineyard business or a cupcake business that you don't have set up like a business and that's not intended to be profitable. and you claim losses against that. so the real take away there is make sure you have a legal business set up as a business and the real way to think about
it is it has to be profitable three out of five years to really qualify as a business. >> so for more tax advice, check out irs.gov. back to the tornado zone. we've been telling but that miraculous find of a 20-month-old who had survived the storm. she was found in a field. well, now a terrible sad turn. today she was taken off life support and died. we understand that at least 20 people were there with her, including her grandparents on either side. just heartbreaking. this being an indiana state hard hit by that devastating storm system where tornadoes were spurned there and lots of devastation, too many deaths, and now this 20-month-old among them. another big worry for a lot of survivors, now they're looking at a cold snaf that p that is o way and possibly snow. >> later on this evening and
into tonight right there in indiana they could see a couple inches of snow coming in, and a lot of people are out of their homes because of the damage, but many people who are in their homes are without electricity still. this is going to be a long recovery process so being exposed to these types of elements is going to be an issue. this is not a terribly strong system so nothing severe, no more tornadoes, no lightning even we don't think with this storm. we have some spotty showers there. you can see them in eastern kentucky at this hour, and then the main system is what you see coming in across parts of illinois over towards st. louis. so starting with rain and then changing over to that snowfall. here you can see where we have the winter weather advisories in effect, west liberty, kentucky, one of the areas hit hard. that's under the advisory. 1 to 3 inches in all of that entire purple area. here is where the storm system is going to be tracking. this is going to be out of here by tomorrow morning. there you can see it moving over towards the mid-atlantic and then off the coast. so it's a clipper system as we call it, moves pretty quickly.
temperatures tonight, look at that, down below the freezing mark. it will be very cold, but they will recover tomorrow with sunshine and temperatures back in the 50s and 60s. >> thanks so much, jacqui. i know you're going to be keeping us posted throughout the evening. we'll have much more of the "newsroom" straight ahead. i'm fredricka whitfield. thanks for being with us this afternoon. don lemon is coming up next. have a great week. cars in 2011. the volt's battery has been tested for more than 395,000 hours. ♪ and, most importantly, the volt has received the highest overall vehicle score for safety possible. [ cheers and applause ] the extended-range electric chevy volt. hard to argue with the facts. ♪ but sometimes i wonder... what's left behind? [ female announcer ] purifying facial cleanser from neutrogena® naturals. removes 99% of dirt and toxins without dyes, parabens or harsh sulfates.