Chick & Karo Tax Preparation Tips for 2011
To complete your 2011 tax return accurately, timely, and without waiting to the last minute, below are some items to assist you with information collection. If any of these activities occurred in 2011, then please collect the appropriate information for your tax return.
• Foreclosure or short sales of real estate or debts forgiven on credit cards will require the detailed assets and liabilities relating to the transaction for reporting gains and losses. Also please provide any forms 1099A or C received from your bank or Credit Card Company.
• Stocks, bonds, mutual funds sold or transferred during 2011, the purchase price and the original date of purchase is not generally provided by the stock broker and are required for the tax return. Please check with your broker or mutual fund Company for this information.
• Real property purchased or sold during 2011 will require the HUD-1 closing statement.
• Paid child care will require the name, address, amount paid, and tax identification number of the child care provider must be provided.
• Automobile mileage will require the total miles driven in 2011, and specific mileage driven for business use. The use of your vehicle for medical, moving, or charitable purposes only requires the miles driven for each specific use.
• New born child in 2011 will require name, sex, date of birth, and social security number for the tax return.
• Gift(s) in excess of $13,000 to another individual excluding your spouse must be recorded including the amount, date, and relationship of the receiver. If property was gifted, then an appraisal is general required.
• Non-cash donations must include details of the items, the value at the time of the donation, and to whom the donation was made, including name, address, tax identification number, and the date of contribution. Any non-cash donation in excess of $5,000 requires an appraisal.
• Moving personal residence in 2011 will require detailed information from past residence to your new home, including the address, mileage, moving related costs, and the date of the move.
• Estimated Taxes Paid for 2011 need to be recorded including the amounts and the dates paid.
• Sales Tax on Large Purchase Items, including automobiles will require detailed information as to the item description, date, amount, and usage; e.g. purchase of a vehicle, boats, or aircraft. Copy of the bill of sale is required for the 2011 tax return.
• Hybrid Vehicle purchased in 2011 must have a dealer certificate and include the date of purchase, amount, make, and model.
• Residential Energy Property Credit may apply to any energy efficient improvements to your existing home. The credit applies to improvements such as adding insulation, energy efficient exterior windows and energy-efficient heating and air conditioning systems. Manufacturer certification, energy star labeling, and invoices will be require.
• Identity Thief: If you know or believe that your social security number has been used by others, contact our office for additional information on notifying the Internal Revenue Service on the special form that they have released.