Most of you are aware that this year we have a couple of extra days to file, extending the due date to April 17. And we can all breathe a sigh of relief that Congress extended the 15% capital gains rates. Additionally, for those folks who inherited estates in 2011 that were valued at less than $5 million, you are home-free, as far as federal estate tax goes. But should your pockets be deeper, you will face a 35% tax wallop.
And there are a few other changes that may affect your pocketbook Tax Law Changes for 2011 Federal Tax Returns:
· You’ll have to file a new piece of paper, Form 8949, for Sales and Other Dispositions of Capital Assets, i.e., your capital gains and losses.
· If you didn’t report the taxable amount of monies you converted or rolled over an amount from a traditional IRA to a Roth IRA or designated Roth in 2010 on your 2010 return, you will need to report half of it on your 2011 return and the rest on your 2012 return.
· Alternative motor vehicle credit, but only if you purchased—or put into service—the vehicle in 2011, and it is a new fuel cell motor vehicle. Credit may also be available for the cost of converting a vehicle to a qualified plug-in electric drive vehicle. Use Form 8910.
· Standard mileage rates, which are 51 cents per mile for January 1 through June 30 and 55 ½ cents per mile for July 1 through December 31.
· You’ll be happy to note that the Alternative minimum tax (AMT) exemption amount increased to $48,450 ($74,450 if married filing jointly or a qualifying widow or widower; $37,225 if married filing separately).
In these tough economic times, every dollar counts, so make sure you get all the deductions you have coming!
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