Self Employed Health Insurance

Great news! For 2010, you can now subtract self employed health insurance from income in the calculation of self employment tax on schedule SE.

2011 Nonbusiness Energy Property Credit

The credit is still available for property placed in service in 2011 but in greatly reduced form. You can now get a maximum of $500 based on 10% of  qualified improvements. Qualified improvements include energy-efficient windows, doors, insulation, certain roofs, and heating and air conditioning systems. Installation costs only qualify in the case of heating and air conditioning systems. This $500 credit is reduced by the total of any credits taken on your return for 2006 through 2010 so it probably won't help many taxpayers.

Don't forget Charitable Mileage.

You can deduct $.14 a mile for your charitable mileage which includes mileage to deliver items to Goodwill and any volunteer activities with a charitable organization. Any time you go to church except for regular services should qualify. For example, you can deduct the round trip mileage to a church committee meeting.  You may be surprised how it can add up.

Limits on personal exemptions and itemized deductions gone for 2010!

High adjusted gross income will not lower your personal exemptions and itemized deductions like it has in prior years. You get to deduct 100% in 2010.

Scam Alert

If you get an email from the IRS, it is a scam. The IRS does not send emails to taxpayers ever. The emails are just a trick trying to get your confidential personal and financial information and  flourish during the tax filing season. You have been warned!

Tax Deadline Extended to April 18th

The tax deadline, normally April 15th, has been extended to Monday, April 18th due to a District of Columbia holiday.  Read more from the Atlanta Business Chronicle

Gift and Estate Tax

The gift tax has the same $5,000,000 exemption for 2011 and 2012 as the estate tax. This is an opportunity that may not come up again for significant gift tax planning.

Also for 2011 and 2012, non-taxable estates will have to file an estate tax return to establish the amount of unused estate tax exemption going to the surviving spouse. This makes the exemption portable and can create a tax free estate of up to $10,000,000 for a husband and wife.

Estate assets passing to heirs will receive a step up in basis to fair market value at date of death effective back to January 1, 2010.