Deductions and Write-Offs

You may be treated as actively participating if for example you participate in making management decisions or arrange for others to provide services. Examples of management decisions are, approving new tenants, deciding on rental terms, approving capital or repair expenditures and other similar decisions.

A gift tax return must be filed on IRS Form 709 for any gift given an individual other than your spouse if the gift exceeds $14,000 ($13,000 in 2012).
A return does not have to be filed for gifts qualifying for the medical expenses or tuition exclusions.

The Gift tax return, Form 709 is due to be filed by April 15th of the year following the year of the gift. Extension forms may be filied if needed.

The IRS has announced that interest rates will not change for the first quarter of 2012, which begins on January 1, 2012 and goes through March 31, 2012. Interest Rates for Q1 2012
IRS interest rates will continue to be charged as follows:
•3% for overpayments (2% for corporations)
•3% for underpayments
•5% for large corporate underpayments
•0.5% for the portion of a corporate overpayment in excess of $10k.
Additionally, the 3% IRS underpayment interest rate applies to estimated tax underpayments for the first quarter of 2012 and will continue through April 15, 2012. The federal short-term rate will also remain the same throughout this period of time.

Interest Rates for Q1, Q2 and Q3 for 2013 will continue to be charged as follows:
3% for overpayments (2% for corporations)
3% for underpayments
5% for large corporate underpayments
0.5% for the portion of a corporate overpayment in excess of $10k.
Under the Internal Revenue Code, the rate of interest is determined on a quarterly basis. For taxpayers other than corporations, the overpayment and underpayment rate is the federal short-term rate plus 3 percentage points. Generally, in the case of a corporation, the underpayment rate is the federal short-term rate plus 3 percentage points and the overpayment rate is the federal short-term rate plus 2 percentage points. The rate for large corporate underpayments is the federal short-term rate plus 5 percentage points.
The rate on the portion of a corporate overpayment of tax exceeding $10,000 for a taxable period is the federal short-term rate plus one-half (0.5) of a percentage point. Further, the federal short-term rate that applies during the third month following the taxable year also applies when determining estimated tax underpayments during the first 15 days of the fourth month following the taxable year

The standard mileage rate(s) for 2013 is .14

Beginning on Jan. 1, 2012, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be 23 cents per mile driven for moving purposes.

Interest is earned over 30 years. You do not have to report the interest income until you cash in the bond or it reached its final maturity, whichever comes first. When you do the interest is subject to federal income tax but exempt from state and local tax.
You cannot cash the bond in until 6 months of ownership. If you cash it in after you have owned it for less than five years you will forfeit 3 months of interest.
The Bureau of the Public Debt announced today that as of January 1, 2012, paper savings bonds will no longer be sold at financial institutions.
This action, which supports the U.S. Department of the Treasury's goal to increase the number of electronic transactions with citizens and businesses, will save American taxpayers approximately $70 million over the first five years. But savings bonds, introduced in 1935, are not going away. Electronic savings bonds in Series EE and I will remain available through purchase in TreasuryDirect®, a secure, web-based system operated by Public Debt – where investors have been purchasing savings bonds, available 24/7, since 2002.

Individuals are entitled to claim a personal exemption for themselves and any dependents they support.
The personal exemption reduces your taxable income. The personal exemption amount is indexed annually for inflation. The 2013 phase-out begins with AGI over $300,000 for married filing joint returns and over $250,000 for non married filing joint returns.
For tax year 2013, the personal exemption amount is $3,900.
There was no phase out in years 2012 and 2011.