What’s New for 2011?

·        Mid-year Mileage allowance increase

·        Lower Social Security rate and self-employment tax. Deduction for self-employment tax.

·        Higher standard deductions

·        Tax rate brackets and preferential rates for capital gains/qualified dividends

·        New form 8949 for reporting sales of capital assets and revised Schedule D, Broker reporting of basis on Form 1099-B/

·        Bonus Depreciation and first-year expensing for qualified business investments

·        Vehicle depreciation limit

·        Alternative minimum tax  (AMT) exemption for 2011

·        Estate tax reinstated with stepped-up basis, special rules for estates of 2010 decedents.

·        Revised home energy credit

·        First-time homebuyer credit

·        IRA and Roth IRA contribution phase-out

·        Reporting 50% of 2010 conversion to Roth IRA

·        Eligibility for saver’s credit

·        Two-year limit for claiming equitable innocent spouse relief eliminated

·        Late election to aggregate real estate activities

·        Partial exchange of commercial annuity

·        Restriction on health FSA reimbursement of over-the-counter medications

·        Higher deduction limits for long-term care premiums

·        Hybrid vehicle credit no longer available

·        MWP credit not allowed

·        Foreign earned income and housing exclusions

·        High-low reimbursement method for reimbursing employees for travel has been discontinued

·        Additional child tax credit

·        Annual exclusion for gifts

·        Advanced earned income credit not allowed