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Wayland & Vukadinovich Website
Important Filing Dates

 

 

June 30

Report of Foreign Bank Accounts due

 

 

September 15

Extended 2010 corporation income tax returns are due

 

Extended 2010 partnership tax returns are due

 

September 15

3rd Estimated Federal and California estimated tax payments due

 

 

October 15

Extended 2010 personal returns due

 

 

December 15

Appointment calendar for 2011 tax season appointments opens

 

2011 Organizers become available for both mail and electronic versions - call to let us know you'd like one

 

 

January 15 2012

Final 2010

Estimated Tax Payments due

 

 

 

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 The South Bay Tax Report  
June 30, 2011
 

 

It's summer time!

Hermosa Beach has had a bit of the traditional "June Gloom," but it's clear and warm as we write this article and we're looking forward to a wonderful summer.

Some of you STILL haven't filed your 2010 tax returns - remember, they are due on October 15th, and no one wants to wait until the last minute to file, so give up one of those days at the beach to complete your tax information and send it to us as soon as you can

 

Hot News!

The IRS JUST announced significant increases in both the business mileage rate and the medical or moving expense rate. Effective July 1, 2011, the business rate increases from 51 cents per mile to 55.5 cents per mile while the medical or moving expense rate increases from 19 cents to 23.5 cents. The rate for charitable mileage remains at 14 cents per mile.

That's big news in our world!

   

Three Ways to Save for College

There are three main college savings tools today - 529 College Savings Plans, Uniform Transfer to Minors Accounts (UTMAs) and Trusts.

 

529 College Savings plans are known as "qualified tuition plans." States or state agencies sponsor these accounts and the accounts allow for tax-free savings as long as the funds are used for college. A college saver establishes an account for a student to pay for eligible college expenses; generally, a parent or grandparent is the account owner.

 

UTMAs are established by a parent, grandparent or other to transfer ownership of cash or other assets to a minor. This type of account is also known as a custodial account. The child owns the assets immediately and, upon reaching the age of majority (usually 18 or 21 depending on upon the state of residence) the child gains control of the assets to do with them whatever he or she desires.

 

A trust can be set up specifically to fund a college education. It's expensive (an attorney usually drafts the trust and annual tax returns must be filed to report investment income and sales). Given the expense, a trust should only be used to save for college if an UTMA or 529 plan is not appropriate. Use a trust as an UTMA alternative when you want to limit the child from controlling the assets.

  

Reports of Foreign Bank Accounts

We can't remind you often enough about this - US taxpayers are required to report their worldwide income; that is, income from both US and foreign sources. In addition, taxpayers who have an interest in, or signature or other authority over, a financial account in a foreign country are required to file Form TD F 90-22.1, Report of Foreign Bank account and Financial Accounts ("FBAR") if the total value of all such financial accounts exceeds $10,000 at any time during the calendar year. The FBAR is not filed with your tax return. Instead, it is filed with the Department of Treasury in Detroit, Michigan, no later than June 30 of the year following the calendar year reported.

Failure to report income in foreign bank accounts or to file the FBAR carries serious consequences, including large monetary penalties and, in some cases, criminal penalties.

If you have foreign bank accounts and are unsure whether you are required to file the FBAR, we would be happy to review your portfolio and advise you.

 

Spring Cleaning Tax Tips

With summer right upon us, many people have been doing some cleaning around the house. Instead of bringing old clothes and household items to the local dump, you should consider donating them to a local charity or thrift store. The donation could lead to an charitable deduction on your personal tax return, reducing your tax bill!

In order to maximize the tax benefits of your donation, you must make sure that you are donating to an accredited tax-exempt organization. The organization must operate for religious, charitable, educational, scientific or literary purposes. Note that donations made to specific individuals or political organizations and their candidates NEVER qualify.

If you're donating clothing or household items, the items must be in good condition and you are only allowed to deduct the fair market value of the item. In general, the fair market value is the price at which property would change hands between a willing buyer and seller. This is often referred to as the "thrift shop value" of an item.

 

Privacy Requirements

Many of you request that we provide copies of tax returns we file for you to banks, loan brokers or other financial organizations. Please note that, due to Federal privacy guidelines, we are not allowed to provide information to 3rd parties without a formal authorization with AN ORIGINAL signature. Therefore, we usually honor your requests by providing the tax return copies to you directly so that you can forward the information on to the 3rd party directly. Note also that we do not charge a fee for providing electronic copies of your tax returns, but it often takes at least one business day before you will receive a link to a secure portal which will provide you with the information you have requested.
  
Beware of Phony E-mail from "IRS"
The Internal Revenue Service indicates that they have received numerous reports of emails sent to individuals, telling them that they are due a refund. The message directs people to a fake IRS web site that asks for personal data.
Note that the IRS will NEVER contact you via e-mail and you should ignore these emails.
  
   
Are You Getting Married?
Newlyweds can help make the wedded bliss last longer by avoiding problems at tax time. First, report any name change to the Social Security Administration. Next, report any address change to the US Postal Service AND the Internal Revenue Service. Lastly, use the Withholding Calculator available on the IRS website (www.irs.gov) to make sure you have the proper withholding now that there are two of you to consider.
  
Estate Tax Update
Writing about estate and death taxes after an article about marriage doesn't quite seem right, but here goes - After a one-year hiatus, the estate tax has been reinstated for 2011 and 2012, with a top rate of 35%. The exemption amount will be $5 million per individual in 2011 and will be indexed to inflation in following years. Estate of people who died in 2010 can choose to follow eitehr 2010 or 2011 rules
  
IRS Owes Taxpayers $1.1 Billion from 2007
Did you file a tax return in 2007? Recently, the IRS announced that it has a surplus of $1.1 billion from 2007 that was never returned because a tax return was not filed OR a check was returned. Over 1 million people are affected, and you may want to confirm that you actually received - and deposited - your 2007 refund.
  
FAQs Regarding Your Social Security Statement

Q - If I work after I start receiving Social Security benefits, will I still need to pay social security tax and Medicare taxes on my earnings?
A - Yes, any time you work in a job that is covered by Social Security, even if you are already receiving benefits, you and your employer must pay Social Security and Medicare taxes on your earnings.

 

Wayland 2Contact Us

 Visit our website:

   

 Gary Wayland - g[email protected]
Mike Vukadinovich - [email protected]
Susan Patterson - [email protected]
Sonia Tramel - [email protected]
Midge Leatherbury - [email protected]
Debbie Reasor - [email protected]
Gina Stevens - [email protected]
 

Certified Public Accountants
1097 Aviation Blvd
Hermosa Beach CA 90254
(310) 376-0455   (310) 379-4523 fax

PLEASE DO NOT REPLY TO THIS EMAIL!!!!