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01/08/2012 Tax Season

It’s January 2012 and I can’t believe tax season is already here! It’s time to start filing all of the year-end tax forms for employers and employees. Look for most tax forms to be in before January 31st and February 28th at the latest! The tax filing due dates this year are March 15th for corporations and April 17th for Partnerships and Individuals. Some key things to keep in mind this year include Roth conversions, Mileage rates, Energy credits, and as always proper record keeping requirements.
The 2011 mileage rates are:
Business Use: January through June 51 cents per mile & July through December 55.5 cents per mile
For Medical or Moving Use: January through June 19 cents per mile & July through December 23.5 cents per mile
Charitable Use: 14 cents per mile all year
Roth IRA Conversions: If you converted or rolled over an amount to a Roth IRA in 2010 and did not elect to report the taxable amount on your 2010 return, you generally must to report half of it on your 2011 return and the rest on your 2012 return. This also applies to rollovers from a 401(k) to Roth.

Energy Credits: 2 types: Non business Energy Credit & Residential Energy Efficient Property Credit: For most taxpayers 10% of the amount paid or incurred for qualifying energy efficiency improvements installed during 2011 and any residential energy property costs paid or incurred in 2011. (There is a lifetime limit for all years after 2005 to a total of $500)

Items Include: Insulation Material, Exterior Windows, Exterior Doors, Certain Metal or Asphalt Roofs, and Certain Heat Pumps, Furnaces, and Circulating Fans.

(Note) There are some other credits available to taxpayers who have incurred costs for solar, fuel cell, wind, and geothermal energy upgrades. Please call or email for any questions in this area and I will tell you if it qualifies.

Record Keeping: Be sure to keep good mileage logs with odometer readings, business purpose, dates, destination, and total mileage and be sure to hang on to any receipts for all expenses/deductions claimed on your tax return. In most cases hold on to your old tax records for 3 years, see http://www.irs.gov/businesses/small/article/0,,id=98513,00.html for additional info.

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