As most of you know we have been warning for over a year now, (2011 Rockwell and 2012 Rockwell Part 2) of government changes due to new cost basis reporting requirements. While we agree with the overdue changes which in the long run, will be easier, the gravitation from non-reporting of basis, to full reporting of basis will be rocky at best. Given these facts we fully expect personal tax returns to be slightly more complicated and time-consuming this year, therefore more costly as well.
The Culprit: From 8949
Think of this new form as a catch-all for your long-term and short-term gains with a built-in column for errors. This new form, while simplifying other schedules on your return will be more time-consuming, may surprise you at first glance, and will throw all of us out of our tax comfort zone this filing season.
On a positive note, think of it as one step back to take two steps forward. In the coming years, it will get easier and we will all get more accustom synchronizing the data. (We attempt to give our realized gains and losses data in a form that is easy to transfer into tax return data, however we doubt the various outside reporting vendors will have such concerns at this time, they are still focused on capturing the data.)
Don’t Hurry to FILE your Return, But Do Rush to Get Your Information to Your Professional as Soon As Possible!
While we have strongly suggested those early filer’s wait until late March or early April to have their information electronically sent to the IRS, we do suggest you get your tax information to your professional in an extra timely manner. No one wants a tired tax professional doing their taxes !
As you know, we are not tax professionals, however we interface with many on an almost daily basis, especially during the final leg of filing season. If we all try to make each other’s lives easier, maybe this From 8949 will turn out to be a mole hill rather than a mountain!
Have a Great Day!
JK
214-706-4300
www.jkfinancialinc.com
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April 2013 is Gone…Your Capital Market Review…and Video
Here is your April Review Video…Good News, this one is even shorter and to the point (thanks for the suggestions..haha) Next up, how to figure out how to get a more flattering picture on the initial screen.
Hope you enjoy the April 2013 J.K. Financial, Inc. John Kvale Capital Market Video Review
Our first point from April is Interest rates…..yikes…but a better finish.
We watch interest rates as a sign for the possibility of growth and or a slow down. GENERALLY, but not always a lower rate tends to proceed slowdowns. Rates on the 10 year fell to well below 1.70% signaling a slow down or an increase in fear. Early in May rates have found their footing and are moving back to less of a slowdown signaling level.
Taxes and Expenses from the Congressional Budge Office
Given April 15th is personal tax day and we have mentioned that it was a hard tax season this year as many/most seemed to be paying more, we dug this chart from the Congressional Budget Office forecast for 2013 and sure enough, they are expecting a much larger increase as well. Good forecasting on their part and unfortunately lighter pocket books on our part. We sure wish those lines would cross..meaning a balanced budget.
Boston Marathon a tragic event
In a very crazy moment of a positive event gone south, the explosions of the Boston Marathon mark a spot in our April review. We wish all those that were injured a speedy recovery and we are happy for a quick capture.
That’s it for April. Hello May, hopefully you will not pass us so quickly.
Have a Great Day!
John Kvale
214-706-4300
http://www.jkfinancialinc.com
8222 Douglas Ave # 590 Dallas, TX 75225Share this:
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Posted in A Look Back and The Week Ahead, Investing/Financial Planning, Market Comments, Tax Related, Video
Tagged Boston Marathon, Interest Rates, Tax Filing, Video