2011
Standard Mileage Rates: 
  

• 51¢ per mile for the period January 1 through June 30, 2011
• 55.5¢ for the period July 1 through December 31, 2011

 2012

Standard Mileage Rates:

• 55.5¢ per mile

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Dear Clients,

Now that the tax season is underway, I want to briefly mention a few items that will hopefully help the tax return process go more smoothly.

If you elected to receive your tax packet via email and have not received an email from me, please contact the office or send me an email. All packets were either put in the mail by mid-January or emailed on January 20th.

Those of you who opted for the email version .... thanks for giving the new system a try. Remember, that I am happy to meet with you in person if that is your desire and you will need to call the office to set-up the appointment.

Read on for tax return changes ....

If you have proceeds from investment sales, be prepared for additional reporting requirements and different reports on your stockbroker statements.

A 1099-B typically reports your gross proceeds from brokers on investment sales. The laws now require brokers to report not only the gross proceeds from the sale of a "covered security", but also the adjusted basis (frequently your purchase price less cost of commissions) in the security and whether the gain is short or long term. The term "covered security" includes corporate stock, notes, bonds, debentures and other financial instruments. Property acquired by gift or inheritance does not appear to be covered by these rules. The rules require that securities will be deemed to be sold under the "First In, First Out" rule, unless the taxpayer adequately describes the security otherwise. The IRS has introduced a new Form for 2011 tax returns - Form 8949 - that will tie into Schedule D. The new form will indicate whether a Form 1099B issued to the taxpayer includes or does not include basis information for a particular transaction.

You may be able to obtain a revised 1099-B from your broker if the reported cost basis differs from your records. There is a means to make an adjustment on the tax return, but the reporting will not match when the IRS performs their matching routines.

All mileage rates changed in the middle of 2011.

If you claim any business, medical or volunteer mileage on your tax return, I will need your mileage broken down between the first half and the second half of the year.

• If you own a business or have rental property be prepared to answer the following questions on your tax return:
• Did you make any payments in 2011 that would require you to file Form(s) 1099?
• If "Yes", did you or will you file all required Forms 1099?
• What this means is the IRS is cracking down on those who should be reporting payments on 1099s and are not.
• As a reminder, 1099s should be issued to non-corporations / individuals who provide services (not product) to your business. For example, payments for services performed for a trade or business by people not treated as its employees such as a plumber or an interior decorator.
• Also, you may receive a Form 1099-K from your credit card processing company. The good news is that the tax return reporting requirement has been suspended for 2011. The purpose of this form is for businesses including rental businesses to report their proceeds for both cash and credit card receipts. Reporting will be required for 2012.

 
Doris Cloud