Schutte & Hilgendorf wishes you a Happy Holiday Season! Some things to consider as the 2011 TAX YEAR comes to an end:
FEDERAL – There are no major tax changes for this year – most of the “Bush tax breaks” were extended at the end of 2010 to run through 2012. However, there are a couple of items that may affect some of you that are expiring at the end of 2011 and will not be available in 2012:
The option to deduct state sales taxes in lieu of income taxes.
The opportunity for those age 70 1/2 and older to transfer up to $100,000 tax free from their IRAs to a public charity.
The non-business energy credit for qualified energy efficiency improvements and residential energy property expenditures. If you are considering window, furnace, or insulation replacement, 2011 is the last year to be able to obtain a tax credit for these items.
OTHER TAX RELATED ISSUES TO KEEP IN MIND BEFORE THE YEAR ENDS:
If you use a personal vehicle for business purposes you must have a mileage log to document the deductible business use.
If you have a business “home office” there are certain deductions you can use as business expenses. There are limitations and the space you use must be used exclusively for the purpose of the business office.
ARIZONA – Arizona still has three tax credits available for 2011:
• Public School credit – $400 Married; $200 Single
• Working Poor Credit – $400 Married; $200 Single
• School Tuition Foundations – $1,000 Married; $500 Single – this credit can be made up to April 15, 2012 for credit on the 2011 return.
For those of you who file a Schedule C business reporting and you have employees, the minimum wage has been raised to $7.65 beginning January 1, 2012.
If you have any questions regarding these items or other individual tax concerns, please contact us to do a quick review or clarification. We post current and updated information on our website www.prescottaccountants.com. We encourage you to check our site often.
As in prior years, we will be sending out your tax “Organizer” with your prior year tax information on it and in the upper right hand corner will be a pre-set appointment time (if you had an appointment last year). Please notify us with any scheduling conflicts.
Thanks for your time in reviewing this, have a Happy Holiday Season.
This tip brought to you by Schutte & Hilgendorf CPA’s, a Prescott firm serving the greater Yavapai County, providing audit, accounting, bookkeeping, tax preparation and planning, QuickBooks accounting and setup to individuals and small businesses.
Contact us for a free initial consultation 928-778-0079
