In the most recent session of the Georgia State Legislature, Governor Deal and lawmakers passed several changes to tax laws that will affect nearly all residents:

Tax Changes for Individuals

Tax Exemptions Increase for Married Filers
Beginning 2013, married taxpayers filing jointly will receive an exemption of $7,400, a marked increase of the current $5,400 exemption. Those married filing separately will be entitled to an exemption of $3,700. The personal exemption for unmarried individuals remains unchanged at $2,700.

Motor Vehicle Property Tax Phased Out
Vehicles purchased and titled after March 1, 2013 will no longer fall under existing sales and annual property tax regulations. Instead, owners will pay a one-time fee equal to seven percent of fair-market value less trade-in value. The rate is phased in over three years beginning with 6.5% in 2013, 6.75% in 2014 and the full 7% in 2015 and every year thereafter. Individuals purchasing a vehicle between January 1, 2012 and March 1, 2013 may elect either the annual tax or new one-time fee system. Any owner of a vehicle titled before January 1, 2012 will continue to pay annual state taxes as normal.

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In a world where financial uncertainty and economic strain have impacted many individuals, comprehensive planning has become increasingly critical for retirement. With proper planning and advice, one can properly navigate the complex world of retirement.

When: Wednesday, April 25, 2012
Registration Deadline: Wednesday, April 18, 2012

Where: SpringHill Suites, Chesapeake Greenbrier
1446 Crossways Boulevard
Chesapeake, VA 23320

This event if free of charge.

Join CB&H Wealth Management Services and Oast & Hook for an informative joint seminar that will give you a comprehensive look at both the estate planning and the financial planning elements of retirement. Advisors from both perspectives will provide you with sound advice, insight and a sharper tool-set as you plan for retirement. During this seminar, we will explore in greater depth the follow topics:

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An important new provision in estate tax law may save you or your family from paying significant gift and estate taxes. To receive these benefits, you must file an estate tax return for the decedent, even if the estate is not otherwise required to file.

Each individual has a basic exclusion amount, and that amount can be transferred free of federal gift and estate taxes. The basic exclusion amount in 2011 was $5 million and, adjusted for inflation, the 2012 basic exclusion amount is $5.12 million. Under the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010, individuals now have the opportunity to later use the remaining amount from a deceased spouse’s unused exclusion amount (DSUEA), in addition to their own exclusion when making gifts and upon death.

The ability to transfer the DSUEA to the surviving spouse is referred to as “portability.” Portability applies only to married decedents in 2011 and 2012. Under current law, portability will not be available for use by a surviving spouse after 2012. A recommendation to make the law permanent was included in President Obama’s proposed fiscal year 2013 budget.

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The IRS recently announced the launch of the Exempt Organizations Select Check, an online search tool which provides information regarding the federal tax status and filings of exempt organizations. Select Check condenses information previously housed on three different sites to more efficiently search for an organization’s:

• Eligibility to receive tax-deductible charitable contributions (Publication 78 data),
• Tax-exempt status revocation due to lapses in Form 990 filing in three consecutive years (Auto-Revocation List), and
• Annual Form 990-N filings (e-Postcard).

Starting this month, Select Check will be updated monthly for most information, and more often for 990-N filings. For more information and search tips, visit Exempt Organizations Select Check.

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“Lamar Odom may be struggling with the Dallas Mavericks,” notes Alex Kennedy over at HoopsWorld, ”but he’s doing fine financially. Not only is Odom making $8.9 million this season, he also recently sued the Internal Revenue Service and won.” Noah Sheer, Director of CB&H’s Sports and Entertainment division described for Kennedy how Odom was able to find success against the IRS.

In 2010, Lamar Odom, filed a lawsuit against the IRS for disallowing $87,000 in tax deductible expenses. These expenses were comprised of fitness and training costs, fines and penalties imposed by the NBA and interest assessed by the IRS.

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When the Obama administration releases its fiscal 2013 budget plan next month, the President plans to propose an overhaul of the nation’s corporate tax system. While details remain forthcoming, the proposal is expected to reignite a broader national discussion on tax reform for both corporations and individuals.

Although Obama has suggested lowering the corporate rate, Congressional Republicans will likely insist that any reform of corporate tax rules be combined with reforms for individuals. But as reported by Bloomberg, an election-year political stalemate remains the most likely scenario given Obama’s desire to raise the tax rate paid by the nation’s highest earners.

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Join CB&H on February 1, 2012 in Virginia Beach, VA as we explore the decisions required in administering estates including tax elections, distributions of assets to beneficiaries, filing of tax forms and preparation of inventories. This small investment of your time will allow you to be more informed and have a better understanding of the complications of administering estates plus helpful strategies for the completion of tax and probate forms.

Key Discussion Topics:

• Final Individual Income Taxes
• Estate Inventories—preparations and deadlines
• Estate Accounting—preparations and deadlines
• Estate & Trust Income Taxes
• Estate & Gift Taxes
• Planning Ideas & Strategies

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The IRS released the 2012 standard mileage rates for business use of automobiles. Taxpayers driving a car, van, pickup or panel truck can use these rates to determine the deductible costs of that vehicle’s operation.

• 55.5 cents per mile for business miles driven
• 23 cents per mile driven for medical or moving expenses
• 14 cents per mile driven in service to charitable organizations

Rates for business miles driven remain unchanged from the July 1, 2011 adjustment while rates for medical and moving purposes are reduced by 0.5 cents per mile.

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The Georgia Private School Tax Credit allows Georgia taxpayers to redirect Georgia income tax dollars to an eligible Georgia private school as a donation. Donors will receive a dollar-for-dollar Georgia tax credit for the amount they donate to the qualifying school’s student scholarship organization.

• Maximum donation amount for Individuals: $1,000
• Maximum donation amount for joint filers: $2,500
• Maximum donation amount for married filing separate taxpayers: $1,250
• Maximum donation amount for C corporations: 75% of Georgia Tax Liability
  

Who is eligible?
Any Georgia taxpayer

What happens if my donation exceeds my Georgia tax liability?
The tax credit is a “non-refundable” credit. What that means is that you cannot receive a refund for any more than your Georgia tax liability. Any excess credit beyond your tax liability can be carried forward for up to 5 years.

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Join us on Thursday, November 10, 2011 as we discuss “How to Keep What You Have: Estate Tax Planning with the New $5M Exemption and Protecting Your Assets from Creditors.” For 2011 and 2012, the transfer tax exemption has been raised to $5 million. Mike Kirkman, CB&H’s Director of Estates & Trusts, and Robert Miller, an estate planning attorney with Williams Mullen, will share with you ways to take advantage of this new law while it’s still in effect. Topics to be covered include:

Everyone would like to minimize the uncertainties we all face in a world which seems increasingly complex and litigious. This seminar will also provide you with a better understanding of asset protection planning. Learn how to reduce exposure to some of those uncertainties – and in turn, gain a little more piece of mind. This section will cover:

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