Use Tax for Out-of-State Purchases See the attached PDF file: Use Tax for details about the alternative methods for reporting the use tax liability.  In some cases you may use the Use Tax Worksheet.  In other cases you may use the Estimated Use Tax Table.  Let us know which alternative applies to your situation.   Use_Tax.pdf   Cost Basis Reporting for Security Sales (Organizer Letter to Clients) The Energy Improvement and Extension Act of 2008 changed the tax code to mandate every broker required to file a Form 1099-B with the IRS reporting gross proceeds from the sale of a covered security additionally report a customer’s adjusted basis for the security and whether the gain or loss on the sale is classified as short-term or long-term.  The 2011 Form 1099-B contains new boxes for reporting this information.  The new reporting requirement puts the burden on brokers to obtain accurate cost basis information for the securities they hold.  The new reporting requirement obliges the taxpayer to use the new Form 8949 – Sales and Other Dispositions of Capital Assets.  Compliance with the new tax reporting requirements will require additional time on our part.  Clients with multiple brokerage accounts and/or numerous sales transactions should expect their tax preparation fee to increase.  Furthermore, it may result in filing an extension to allow us to coordinate the new details required by Form 8949 and Schedule D. For more information see the PDF file titled Cost Basis Reporting for Security Sales. It will contain the following information: 1)      Narrative discussion about cost basis reporting for security sales; 2)      Effective Date 3)      2010 Form 1099-B and 2011 Form 1099-B (see highlighted areas) 4)      2011 Schedule D (Form 1040) 5)      Form 8949 – Sales  and Other Dispositions of Capital Assets 6)      Basis Determination Rules 7)      Wash Sales 8)      Short Sales 9)      Gifted/Inherited Shares 10)   Issuer Reporting Organizational Actions Affecting Basis  We wish to thank McBride/Daley for authorizing us to use their copyrighted materials on our website.  These materials are copyrighted and may not be reproduced or distributed in whole or part without the permission from the authors.   Cost_Basis_Reporting_for_Security_Sales.pdf