BA Harris LLP

Documentation for Charitable Contributions

Published on Thursday, December 15, 2011

Yesterday I asked my daughter to name three things she learned during the day. She began with a statement about what makes plants appear green (from biology class) and followed that with some obscure fact from math class. It was her third statement, however, that caught my interest: “Always get the receipt!” As it turns out, she had fueled her car after school using her debit card and she forgot to request the gas receipt to print out. She knew this would make reconciling her bank account more difficult for her later, and she doesn’t get her allowance until she has shown her mom that her bank account is reconciled. Read More...

New Cost Basis Reporting for Sales of Securities Set to Begin

Published on Friday, December 09, 2011

Effective for tax year 2011, Form 1099-B issued by stock brokers is required to report the cost basis of certain securities sold during the year. Under the old rules Form 1099-B reported the gross sale proceeds for securities sold during the year. Beginning with the 2011 year Form 1099-B will also report the cost basis of securities sold during 2011 BUT only for stock purchased in 2011 and later. This means your 2011 Form 1099-B will report gross proceeds from securities sold during the year and will report cost basis for those that were purchased during 2011 and will not report cost basis for those purchased in prior years.  Read More...

End of Year Tax Legislation

Published on Tuesday, December 06, 2011

You may recall the uncertainty in late 2009 surrounding the estate tax rules and their repeal as provided for by the Economic Growth and Tax Relief Reconciliation Act of 2001, for estates of decedents dying after December 31, 2009. I don’t think many of us thought Congress would actually allow the estate tax to be repealed. It did. Congressional deadlock prevented any resolution to the repeal until late 2010 resulting in a new estate tax exemption amount of $5,000,000. In each of the last 2 years Congress has gone down to the wire before reaching agreement on very important issues. This makes planning very difficult. We again find ourselves in a similar position. The following is a list of some of the tax provisions which are set to expire unless Congress acts to extend them: Read More...

State of Idaho Department of Labor Corporate Officer Exemption from Unemployment Tax

Published on Wednesday, September 07, 2011

Recently the Department of Labor changed the rules which required corporations to pay state unemployment tax (SUT) on corporate officer wages. Under the new rules the corporation can make an election to exempt officer wages from SUT. With the increases in unemployment tax over the last few years this change in law could result in a more significant savings. Please be aware that if you take advantage of the new exemption for corporate officer wages you will not be able to collect unemployment benefits. Although many corporate officers would likely be ineligible to ever collect unemployment benefits, there are instances where benefits can and have been paid under the old rules. Read More...

Recharacterization of 2010 Roth IRA Conversions

Published on Tuesday, August 16, 2011

With the recent volatility in the stock market we wanted to alert our clients who converted IRA’s to Roth IRA’s in 2010 to a potential planning issue that may warrant some attention in the next 60 days. Read More...