Get your information together:  

• W-2′s and 1099′s are being issued this month
• Gather all documents that you need to complete your return.  (receipts, charitable contribution worksheets and/or receipts, rental information, property tax receipts, and any  other documentation showing deductions or income for your 2011 return)

Ask your questions now:

• If there’s things that you’re unsure about please call our office today to ensure your tax return completion on time!

• Visit the IRS website: Look under our resources tab for different IRS links to help assist you with any questions or necessary information needed for your taxes.

Pace yourself:

• Make sure you have all necessary information- review your paperwork – the last thing you want is a penalty for missing information!
• Call our office today to schedule your tax appointment!  Plan and pace yourself to ensure completion and eliminate mistakes.

Remember, we’re always here to help!

Best Regards,

Miller Verchota, Inc.

Charitable Contributions: http://www.irs.gov/publications/p526/index.html

Home Energy Credits Still Available for 2011: http://www.irs.gov/newsroom/article/0,,id=249922,00.html

Individual Retirement Arrangements (IRAs): http://www.irs.gov/publications/p590/index.html

Investment Income and Expenses: http://www.irs.gov/publications/p550/index.html

401(k) and Profit-Sharing Plan Contributions: http://www.irs.gov/retirement/participant/article/0,,id=211334,00.html

Small Business Health Care Tax Credit for Small Employers: http://www.irs.gov/newsroom/article/0,,id=223666,00.html?portlet=108

Any questions or need to schedule your 2011 tax appointment, please call (815) 477-8000.

Best Regards,

Miller Verchota, Inc.

Of course, when a vehicle is used less than 100% for business, these figures are cut back even further. In fact, the average client may not live long enough to fully depreciate a really expensive car.

Exception for Heavy Trucks, Vans, and Sport Utility Vehicles (SUVs). These vehicles are not subject to the above limits. A truck, van, or SUV is “heavy” if it has a Gross Vehicle Weight Rating (GVWR) (the manufacturer’s maximum weight rating when loaded) above 6,000 pounds. On the second page of this letter, we’ve listed many of the 2012 vehicle models that qualify for these special tax benefits based on their GVWRs at the time we checked them. As you can see, it’s a surprisingly long list. In addition, there may be some we have missed (new and retooled models are coming out all the time). Thus, always verify the GVWR for yourself before making a buying decision. The GVWR can normally be found on a label attached to the inside edge of the driver’s side door.

If you buy such a vehicle in 2011 and use it more than 50% for business, you may be able to deduct the entire business portion of the vehicle’s cost this year. For example, if before the end of the year you buy a new $65,000 heavy SUV that has a gross vehicle weight above 6,000 pounds and is used 100% for business, you may be able to deduct the entire $65,000 this year.

To claim these deductions, you must establish through contemporaneous records (such as, a mileage log) that you use the vehicle over 50% of the time for business. If your business usage later falls below 51%, a portion of the deductions previously claimed will need to be recaptured and reported as ordinary income in that year. Also, deductions allowable for used vehicles may be limited as such vehicles do not qualify for 100% bonus depreciation. Finally, this strategy works best if you are self-employed—claiming a Section 179 and bonus depreciation deductions for a heavy corporate-owned vehicle is much more difficult. Nevertheless, the heavy vehicle deductions can generate major tax savings given the right circumstances.

If you would like more details, please do not hesitate to call.

Sincerely,

Miller Verchota, Inc.

Certified Public Accountants

If you’re in need of tax planning, please call our office today to speak to any one of our accountants!  Read on for further tax planning ideas…

Different Items for Discussion Include:

Items for your business-

• Take Advantage of Tax Breaks for Purchasing Equipment, Software, and Certain Real Property.
• Employ Your Child.
• Claim the Health Insurance Tax Credit for Small Employer.
• Evaluate Inventory for Damaged or Obsolete Items.

Ideas for Maximizing Nonbusiness Deductions-

• Make Charitable Gifts of Appreciated Stock.
• Maximize the Benefit of the Standard Deduction.
• Bunch Deductions Subject to an Adjusted Gross Income Limit.

Making the Most of Year-end Securities Transactions-

• Secure a Deduction for Nearly Worthless Securities.
• Employer Stock Options.

Ideas for Seniors Age 70¹/₂ Plus

• Make Charitable Donations from Your IRA
• Take Your Required Retirement Distributions.

Ideas for the Office

• Maximize Contributions to 401(k) Plans.
• Take Advantage of Flexible Spending Accounts (FSAs)
• Adjust Your Federal Income Tax Withholding

Don’t Overlook Estate Planning

Feel free to call our office to further discuss any of the ideas presented.  We’re more than happy to assist you!

Very truly yours,

Miller Verchota, Inc.

Certified Public Accountants