I got the same glossy issue of Undervalued Quarterly, and they have a website posting dated 7/26 promoting CEII: http://www.undervaluedquarterly.com/2012/07/26/ceii-china-education-international-up-more-than-3-on-high-volume/

I'm used to e-mail spam. Glossy mailing is quite the step up.

For better or for worse

I'm not holding any returns for that. But some clients may be waiting.

More on the delayed 1099-B's

http://www.usatoday.com/money/perfi/taxes/story/2012-02-28/delays-in-brokerages-sending-taxpayers-tax-forms/53292704/1

Form 5695, page 4

http://www.irs.gov/pub/irs-pdf/f5695.pdf

Penson said accounting problems. I have a client affected by that, filed without waiting for them. If there's correspondence from IRS I'll deal with it.

Facebook's Zuckerberg may face $2 billion tax bill

http://money.cnn.com/2012/02/07/technology/zuckerberg_tax_bill/index.htm

Exporting Stock Sales from TD Ameritrade

1. Log into TD Ameritrade
2. Accounts | Gain/Loss
3. Under the Realized Gain/Loss tab, YTD
4. Change tax year to 2011
5. View
6. At top right, "Export data"
7. Save (to desktop)
8. xlsx file contains transaction details, suitable for e-mailing to preparer

Probably your brokers have info you can download to Excel, which may be easier to work with than Quicken.

(yes, trades with reported basis must be separated from trades without reported basis)

Those go on the new form, with the box checked that basis wasn't reported on 1099-B. Just like the old Schedule D.

Nothing major for 2011. Medicare tax on unearned income kicks in for 2013 if nothing changes.

http://www.aicpa.org/Publications/TaxAdviser/2011/July/Pages/fava_jul2011.aspx

Instructions not yet available. I'm guessing if you disagree with 1099-B (be prepared to prove your numbers)

New form to accommodate basis reported on 1099-B

http://www.irs.gov/pub/irs-pdf/f8949.pdf

Capital gains rules for 2012 are the same as 2011. But in 2013, capital gains tax rate is likely to rise, from 15 to 20%. Also, there will be a 3.8% Medicare tax on investment income.

It might make sense to sell a winning long-term stock (if you're so blessed as to have one) before 2013, and immediately buy it back.

Wash sale rules apply to losses, not to gains.

Retirees can make Qualified Charitable Distributions from an IRA; income from distribution is not included on the return - this even works for taxpayers who don't itemize. Also, reduced AGI can result in less taxable social security.

Scheduled to expire the end of this year, may be extended.

http://www.irs.gov/retirement/article/0,,id=234258,00.html

Nice interception USC!

Michigan game delayed due to lightning, so ABC showing USC until Michigan resumes.

Hope everyone's well.

Best guess would be the average of the day's high and low.

For all of $79, you are correct.

Here's ten year old data, should give you an idea.

http://www.latimes.com/la-avgdeduct,0,750110.story

IRS Audit Red Flags

http://kiplinger.com/features/archives/12-audit-red-flags-the-irs-looks-for.html?si=1

It is all there. Money received for shared expenses is income, and the related expenses are deducted (2% miscellaneous itemized).

Not much you can do, link is to a Turbotax forum

https://ttlc.intuit.com/post/show_full/cc9NkCqrmr4kHwacfArRo0/how-do-i-override-schedule-d-limitation-on-number-of-digits?p=3&q=cost+basis+stock+split+capital+gain+l&s=3

IRS is probing donors to non-profits that buy political ads

http://www.usatoday.com/money/perfi/taxes/2011-05-13-irs-nonprofit-gift-tax-political_n.htm

Capital Gains Tax Rates

In the United States, individuals and corporations pay income tax on the net total of all their capital gains just as they do on other sorts of income. Capital gains are generally taxed at a preferential rate in comparison to ordinary income (26 U.S.C. §1(h)). This is intended to provide incentives for investors to make capital investments, to fund entrepreneurial activity, and to compensate for the effect of inflation and the corporate income tax. The amount an investor is taxed depends on both his or her tax bracket, and the amount of time the investment was held before being sold. Short-term capital gains are taxed at the investor's ordinary income tax rate, and are defined as investments held for a year or less before being sold. Long-term capital gains, which apply to assets held for more than one year, are taxed at a lower rate than short-term gains. In 2003, this rate was reduced to 15%, and to 5% for individuals in the lowest two income tax brackets. The reduced 15% tax rate on qualified dividends and long term capital gains, previously scheduled to expire in 2008, was extended through 2010 as a result of the Tax Reconciliation Act signed into law by President George W. Bush on May 17, 2006. This was extended through 2012 by President Barack Obama on Dec 17, 2010. As a result:

In 2008-2012, the tax rate on qualified dividends and long term capital gains is 0% for those in the 10% and 15% income tax brackets.
After 2012, dividends will be taxed at the taxpayer's ordinary income tax rate, regardless of his or her tax bracket.
After 2012, the long-term capital gains tax rate will be 20% (10% for taxpayers in the 15% tax bracket).
After 2012, the qualified five-year 18% capital gains rate (8% for taxpayers in the 15% tax bracket) will be reinstated.

http://en.wikipedia.org/wiki/Capital_gains_tax_in_the_United_States

Hopefully they'll find a way to avoid shutdown; if there is one, folks screaming for their refunds might make it a short one.

Paper returns will definitely be delayed. E-file with direct deposit is safe, not sure about e-file with paper checks.

Usually no need to mail anything when you e-file. W-2 and 1099 info is all sent electronically.

Home Office is a possibility. Room must be used exclusively for business. If this applies to you, see Form 8829.

b4

Yes, 1099-R withholding goes on line 61.

Ouch on the capital loss! You'll get $3000 a year til it's used up.

You can amend your 2009 return to claim the $500 loss. Federal Form 1040X, Minnesota Form M1X.

Attention Landlords

TIGTA audit concludes that IRS should increase examinations of tax returns with losses from rental real estate activity [Audit Report No. 2011-30-005]: IRS should perform more examinations of individual tax returns that report losses from rental real estate activity, the Treasury Inspector General for Tax Administration (TIGTA) said in an audit that was made public on March 9. The impetus for the audit was a 2008 TIGTA report that found at least 53% of individual taxpayers with rental real estate activity for tax year 2001 misreported their rental real estate activity. According to TIGTA, that misreporting resulted in an estimated $12.4 billion of net misreported income. One of the objectives of the new audit was to recommend ways to assist in the identification, selection, and examination of tax returns with rental real estate activity. During fiscal years 2008 and 2009, IRS's rental real estate Compliance Initiative Program (CIP) examined a small percentage of the 318,339 examinations conducted by revenue agents and tax compliance officers, TIGTA said. Auditors projected that if the agency increased the percentage of rental real estate CIP tax returns it examined, potential tax assessments could grow by $27.3 million over a five-year period. “Given the magnitude of underreporting in our voluntary system of tax compliance, even small improvements in the IRS's examination of tax returns with rental real estate activity could increase taxpayer compliance and generate substantial additional revenue to the federal government, helping reduce the tax gap,” said J. Russell George, the inspector general. The audit is located at http://www.treasury.gov/tigta/auditreports/2011reports/201130005fr.pdf

Welcome WorkNoPlay (and thanks Cintrix!)

Capital Losses can offset Capital Gains without limit. For instance:

2010 $10,000 capital loss. $3000 offsets wages and other income, $7000 carried forward to 2011.

2011 $10,000 capital gain. $7000 of it is offset by the capital loss carryforward, $3000 of gain remains and will be taxed.

So here's to a successful, tax-sheltered 2011!

If any form in the return is over the maximum allowed (I don't have chart handy), software should alert you that return can't be e-filed. Or if software fails, IRS will reject the return.

Nebraska encourages e-filing

Allow at least 4 months to receive your refund if you file a paper return

I don't think it's iHub. I got the spam (it seems to have stopped) at a different e-mail address than the one iHub has. And no spam at the e-mail address iHub does have.

My gmail spam folder is exploding with tips about MBYL. Not effective marketing with me, but maybe someone will bite.

Exporting Stock Sales from TD Ameritrade

1. Log into TD Ameritrade
2. Accounts | Gain/Loss
3. Under the Realized Gain/Loss tab, YTD
4. Change tax year to 2010
5. View
6. At top right, "Export data"
7. Save (to desktop)
8. xls file contains transaction details, suitable for e-mailing to preparer

What to do with tax forms

Processing not as delayed

The IRS also announced today it anticipates starting to process tax returns impacted by December’s tax law changes by mid-February. The IRS continues working to reprogram its computers to reflect new tax law changes enacted by Congress and signed by the President in December.

http://www.irs.gov/newsroom/article/0,,id=234483,00.html

Latest is he might stay...

ANN ARBOR, Mich. (AP) -- Rich Rodriguez has his job for at least another day.

Michigan athletic director Dave Brandon and Rodriguez met Tuesday afternoon and will get together again Wednesday morning to discuss the embattled football coach's future, The Associated Press has learned.

A person familiar with the situation told the AP that Brandon has not decided whether to fire Rodriguez, who is 15-22 after three seasons running college football's winningest program. The person spoke on condition of anonymity because the details of the evaluation were supposed to remain confidential.

Read more: http://sportsillustrated.cnn.com/2011/football/ncaa/01/04/michigan.rich.rodriguez.ap/index.html#ixzz1A7pekNqA

Rich Rodriguez Fired as Michigan's Head Football Coach http://t.co/A6ekA0a

$2.5 million buyout should ease his pain.

Standard deduction has risen since 2002, so more people would use. Allowing up to $1000 of real estate taxes to be taken as additional standard deduction tipped many seniors from itemized to standard.

Most of my clients take standard deduction, but most of my time is spent on those who itemize (they seem more likely to have other stuff going on, like stock trading and rental properties).