Under new IRS rules, taxpayers will be able to use a simple formula based on the size of their home offices. The streamlined method, available for 2013 returns, lets taxpayers deduct $5 per square foot, up to a maximum of 300 square feet, or $1,500.

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There is a 0.9% increase in the Medicare tax on wages and self-employment income….S-Corp pass thru may be included.

Taxable fringe benefits—such as personal use of a company car or airplane—are subject to the 0.9% tax for employees.

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http://online.wsj.com/article/SB10001424052702303684004577509112641512828.html

I recommend you take a look at our SD IRA page on RealtyNetWorth.com.

This can be an excellent way to roll existing retirement funds or use future IRA deposits to make hands on real estate investments. You pick the property and we broker the buy/sell activities. We have many professionals in the referral network to assist if/when needed from setup with a MI based trustee to CPA’s, property inspectors, etc.

If you want to enter the market but don’t have free funds outside of retirement accounts, this may be a good option for many – especially if you are younger/ have a % to set aside for this type of investing/ or are interested in property with a bit of knowledge regarding repairs and care of homes.

Beginning on Jan. 1,

the standard mileage rates for the use of a car, vans, pickups or panel trucks will be

• 56.5 cents per mile for business miles driven,
• 24 cents per mile driven for medical or moving purposes, and
• 14 cents per mile driven in service of charitable organizations.

• Mortgage debt relief has been extended for another year. See Sec. 202 of the bill.
• the Bush tax cuts — which have been temporary since 2001 — permanent for couples’ income below $450,000 and individuals’ income below $400,000. For income above those levels, the Bush tax cuts have expired
• class monday…..more to come

…Big unknowns include the top rates on long-term capital gains and qualified dividends, both now 15%. The rate on gains could hit 23.8% or more, and the rate on dividends could be as high as 43.4%.

• …Write next semester’s tuition checks before year end.
• Prepay state taxes.
• Accelerate medical expenses. The threshold for deducting these expenses, now 7.5% of adjusted gross income (10% for AMT payers), rises to 10% next year for most taxpayers.

story

September 15, 2012 09:32 p.m.

The current top rate of 15% is set to expire on Dec. 31 and revert to 20%, unless Congress acts. Will you sell your appreciated stocks ?

CAUTION: No longer can you take deductions with “receipts for stuff I gave”.

A thank-you note can be a good enough record, as long as it includes the sentence: “No goods or services were received in exchange for the contribution.”

Story

“Many lower-income parents could see their tax bills jump by thousands of dollars next year if nothing is done to stop a series of tax breaks from expiring January 1.

Unless Congress takes action before the end of the year, four important credits for families — The Child Tax Credit, Earned Income Tax Credit, Child and Dependent Care Credit and the American Opportunity Credit — will revert back to previous levels.

If this happens, many families will be worse off by hundreds — or even thousands…”  story

ps, you might want to go to college asap

You already saw on the news last night the head of the International Monetary Fund note that the US is at the edge of a “Fiscal Cliff” and pulling down the world economy. You also heard that the average American w/ earnings of about $40k will pay $2000 MORE in taxes for 2013.  All this will bring … according the the IMF speaker, a new wave of great recession: “2%+ and 2%- = 0%, the math speaks”

This may be a good year to get out and vote folks.

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