Where did the summer go?

 It's October 1st and it may reach 90 degrees today here at the international headquarters of

Wayland & Vukadinovich LLP.

We're convinced that the fall is THE best time of year - there's great weather, football (remember - don't tell Gary when USC loses) AND it's time for us to dig in by taking more classes, reading more wonderfully fascinating articles on current tax developments (this week's favorite article was "The Codified Economic Substance Doctrine and Captive Insurance Companies" - who says reading tax articles can't be great fun!!), and readying everything to help you pay the lowest LEGAL tax bill.

We're thrilled to do it, even if we have to wander thru articles like "Receiving Liquidating Distributions In More Than One Year." 

Can I do anything to help my taxes

before year-end?

After October 15th, the official end of the 2011 tax-filing season, we turn our laser-like attention to "planning" for 2012.

We know, "planning" for 2012 in October and November 2012 seems much like locking that barn door after your cow has left (we, of course, don't have cows in Hermosa Beach so perhaps we should say it's like locking the door after your surfboard has walked away) but no matter when you do it, planning and working on tax savings ideas is always good.

Consider:  

• Converting a regular IRA to a Roth IRA if your income level supports such a move;
• Making a gift of up to $13,000 to children (preferably, yours...) or relatives - see below for more on that;
• Prepaying your real estate taxes, charitable contributions, and deductible business expenses;
• Reviewing your pre-tax Health Savings Account contributions and/or your 401k or 403b contributions to make sure you are taking full advantage of these great deductions;taking MORE than your required minimum distribution from your IRA if your income is lower this year;
• Voting early and often (okay, we're kidding about that "often" part) but be ABSOLUTELY SURE you vote this year;
• Organizing your tax records early this year. Of course, we're always thrilled to see all of your receipts, and summaries on your expenses listed on the back of napkins but you may find you actually find MORE receipts if you take time to organize everything NOW;
• Paying for qualified child care expenses with a flexible spending account at your work;
• Tracking those expenses you incur for job hunting - expenses such as travel, printing, postage, education and meals may be deductible;

The 25 Documents You Need Before You Die!

Last year, we referenced a Wall Street Journal article that listed the

25 documents you  need to retain to assist your heirs:

1. Marriage licenses;
2. Divorce papers (if that marriage didn't go so well);
3. Personal and family medical history;
4. Durable health care power of attorney;
5. Authorization to reveal health-care information;
6. Your living will;
7. Do-Not-Resuscitate order;
8. Housing, land and cemetery deeds;
9. Escrow mortgage accounts;
10. Proof of loans made and debts owed;
11. Vehicle titles;
12. Stock certificates, savings bonds and brokerage accounts;
13. Partnership and corporation operating agreements;
14. Tax returns;
15. Life insurance policies;
16. Individual retirement accounts;
17. 401(k) accounts;
18. Pension documents;
19. Annuity contracts;
20. List of bank accounts;
21. List of all user names and passwords;
22. List of safe deposit boxes
23. Your will
24. Letter of instruction and
25. Trust documents.

Some of you still need to file 2011!

We know, most of you filed April 15th or earlier and have already cashed those refund checks, but some of you have yet to complete your 2011 returns - they are due on October 15th and can't be extended.

If you're reading this AND have not sent us your information,

you'll need to bring in some chocolate chip cookies or a nice bottle of wine (we need to be motivated this time of year!) along with your W2s as we're not sure we can complete your returns prior to October 15th!

Get those organizers in here!

News from the Franchise Tax Board

In prior years, it often took the Franchise Tax Board 45 days before they would deposit checks that you would send them in payment of your tax bill. Joining the 21st century, the Franchise Tax Board has recently announced that they have purchased scanners and are depositing paper checks

THE SAME DAY THEY RECEIVE THEM!

The Franchise Tax Board continues their education and outreach to explain to all of us how to pay use tax - that's sales tax you owe on out-of-state purchases where sales tax is not paid.

Recently, they sent out over 250,000 letters to high income taxpayers who reported no use tax in 2008 - 2009 - 2010 to explain  once again - that some of us MAY owe use tax and to encourage all of us to self-report the tax on prior and upcoming tax returns.

2012 Mileage Rates

This is just a reminder for those of you who don't commit our newsletters to memory -

(We're thinking about sending you a quiz at year end!)

In 2012, business miles are deductible at 55.5 cents per mile.

Medical and moving miles are 23 cents per mile and

those charitable miles are deductible at 14 cents per mile.

Let's Take One More Look at Gifts

Gauging from the overwhelming email response we had this past month (okay, it was only three emails), we may not have been clear regarding gifts.

Remember - you can give away as much as $13,000 this year to a relative, a friend or anyone you wish without any tax consequences.

That $13,000 is an exclusion, not a deduction.

You can't deduct any gifts as charitable donations unless you make your gifts to an IRS recognized charity and unless you actually itemize your deductions.

The $13,000 you gift - and we here at Wayland & Vukadinovich will gladly accept such a gift - is not income to the recipient as long as the money is truly a gift and not a form of payment for goods and services.

Note also that those in the know - those highly paid lobbyists and "Consultants" back in Washington DC believe the limit on gifts is expected to increase to $14,000 next year - an inflation adjustment required by law.

It's not been officially announced yet so we'll keep you posted when the news becomes official.

Can you help me with my refinance?

Once again, rates are headed lower, and once again, you've reached out to us to assist you in your quest for the PERFECT home mortgage interest rate, asking that we provide your banker with electronic copies of your tax returns, letters explaining that South American oil drilling partnership that went bankrupt and other information that those intrusive underwriters seem to need to refinance.

Remember - we're happy to honor your requests for electronic copies of your documents (usually, at no charge) although we can usually only provide YOU with a copy as we can't provide copies to 3rd parties without your signed original written authorization. Note also that letters and other responses you or your underwriters might ask us to provide will usually generate a billing -

we're thrilled to help but we have to make a living!