Reporting of Foreign Assets Required

On December 14, 2011 the IRS released form 8938 for reporting certain specified foreign assets. Per IRC §6038D, individual taxpayers holding an interest in a specified foreign asset must report that interest on their tax return if the combined value of all specified foreign assets is $50,000 or more. A specified foreign asset includes the following:

• Any financial account maintained by a foreign institution
• Stocks issued by a non US entity that are not held in an account maintained by a financial institution
• An interest in a foreign entity not held in an account maintained by a financial institution
• Notes, bonds, or debentures issued by a foreign person not held in an account maintained by a financial institution
• An interest in a foreign trust not held in an account maintained by a financial institution Read more

Happy Holidays from the entire team at LMGW!

As in past years, we will be making charitable donations in the name of our clients in lieu of mailing holiday cards. This year, donations will be made to the following organizations:

• The David Andrew “Pooh” Madden Foundation
• Second Harvest Food Bank of Santa Clara County
• Second Harvest Food Bank of Santa Cruz County
• Santa Clara Council Boy Scouts of America
• St. Jude Children’s Research Hospital
• Saint Francis High School
• Renegades Association of California
• The JW House

If you are not familiar with any of the organizations listed feel free to ask us about them! Several members of the LMGW team are personally involved with the charities and would be happy to tell you about them. Happy Holidays!

2012 Standard Mileage Rates Released

2012 federal standard mileage rates were recently announced in IR News Release 2011-116. The business standard mileage rate will remain unchanged at 55.5 cents per mile. Medical mileage will decrease to 23 cents per mile and the charitable mileage rate remains at 14 cents per mile.

Remember, in most cases standard mileage is not required and taxpayers can instead choose to deduct the actual cost of operating their vehicle. As always, adequate documentation is required to support the business use of your vehicle.