Lorie D. Blum, CPA » Blog http://sunlakescpa.com Chandler CPA offering accounting, tax preparation, and estate planning | Lorie D. Blum, CPA Wed, 02 Nov 2011 02:44:50 +0000 en hourly 1 http://wordpress.org/?v=3.2.1 LorieBlumCPAhttp://feedburner.google.com 2010 Tax Updates http://feedproxy.google.com/~r/LorieBlumCPA/~3/qs5UaiofEps/ http://sunlakescpa.com/2009/12/new-year-tax-updates-2010-mileage-rates-gifting-limit-retirement-plans/#comments Wed, 16 Dec 2009 16:37:17 +0000 admin http://sunlakescpa.com/cms/?p=89 2010 Mileage Rates, Gifting Limit, Retirement Plans

The New Year is a time for individuals and business owners to make New Year’s resolutions!  It is also a time that brings new rules, limits and rates.  Hopefully I can touch on the changes that are most pertinent to you.

Mileage Rates

The IRS released (IR-2009-111) the standard mileage rates for 2010.

  • 50 cents per mile for business miles driven, down from the 55 cents in 2009
  • 16.5 cents per mile for medical or moving purposes, down from 24 cents
  • 14 cents per mile for charitable causes, which is the same as 2009

Gifting Limit

The IRS announced in Revenue Procedure 2009-50 that the gift tax annual exclusion amount available to taxpayers in 2010 will remain unchanged at $13,000.  This exclusion permits each taxpayer to gift $13,000 annually to any beneficiary without being required to use his or her lifetime gift exemption amount.  This means if you and your spouse want to gift to each child, you can each gift $13,000 for a total of $26,000 to each child.

Contribution Limits for Retirement Plans

The IRS announced the Pension Plan limitations for 2010 in IR-2009-94. The most frequently asked about plans are:

  • SIMPLE — remains unchanged at $11,500 with a $2,500 catch-up provision for individuals 50 or over
  • SEP — remains unchanged at $49,000
  • 401(k) — Maximum elective deferral remains unchanged at $16,500 with a $5,500 catch-up provision for individuals over 50.  The annual limit on additions to the plan remain at $49,000, or $54,500 for participants age 50 or older.
]]> http://sunlakescpa.com/2009/12/new-year-tax-updates-2010-mileage-rates-gifting-limit-retirement-plans/feed/ 0 http://sunlakescpa.com/2009/12/new-year-tax-updates-2010-mileage-rates-gifting-limit-retirement-plans/ Essential Steps for a Complete Estate Plan http://feedproxy.google.com/~r/LorieBlumCPA/~3/GOIZZE00-r0/ http://sunlakescpa.com/2009/12/essential-steps-for-a-complete-estate-plan/#comments Tue, 01 Dec 2009 14:53:41 +0000 admin http://sunlakescpa.com/cms/?p=78 Laws and family circumstances change. Have you reviewed your estate plan lately? Below are some steps to ensuring a complete estate plan:

  • Make a complete and accurate inventory of all assets and their values.
  • Determine the form of ownership of each asset; understand its effect on the transfer of property at death.
  • Estimate the size of the estate to determine whether estate tax planning is needed.
  • Decide whether certain family members or assets need special protection.
  • Verify beneficiary designations on life insurance policies and retirement accounts.
  • Select beneficiaries and determine what provisions should be made for each.
  • Determine how financial and health care decisions will be made in the case of illness or disability.
  • Determine how health care will be funded.
  • Estimate the cost of alternative estate planning methods that will meet your goals.
  • Select and implement the estate plan.
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