Year End Tax Planning 2011

 1. Social Security Taxes

The one-year-only reduction in the Social Security tax expires at the end of 2011. In 2012, the Social Security tax will revert to its regular rate of 12.4%, with half (6.2%) paid by employers and the other half (6.2%) paid by employees. Self-employed persons pay the full 12.4% rate as part of the self-employment tax. For 2011, there was a temporary rate reduction to 4.2% for employees and to 10.4% for self-employed persons.

2. Educator Expense Deduction

The above-the-line deduction available for teacher's out-of-pocket classroom expenses expires at the end of 2011. This deduction will not be available for 2012 unless renewed by Congress.

3. Tuition and Fees Deduction

The above-the-line deduction for college tuition expires at the end of 2011. For 2012, both the Lifetime Learning Credit and the American Opportunity Credit will be available for college students.

4. Alternative Minimum Tax

Two separate provisions impacting the alternative minimum tax (AMT) will expire at the end of 2011. First, 2011 will be the last year when personal tax credits will be allowed to offset both the regular tax and the AMT. For 2012 and future years, tax credits will offset the regular income tax, but not any alternative minimum tax. Secondly, the temporarily patched exemptions for the alternative minimum tax will end in 2011. For 2012 and future years, the AMT exemption amounts will revert to a lower statutory amounts ranging from $22,500 to $45,000. This will result in more taxpayers being subject to the AMT, and will increase the adjustments for taxpayers already subject to the AMT.

5. Adoption Tax Credit

The refundable nature of the adoption tax credit expires at the end of 2011. For 2012, the maximum amount of the adoption credit decreases slightly from $13,360 (in 2011) to $12,650 (in 2012). For 2012, any unused non-refundable adoption credit can be carried forward up to five years to offset the regular income tax.

6. Mass Transit Fringe Benefit Reduced

For 2011, the tax-free exclusion for mass transit fringe benefits was set at $230 per month and was the same amount for tax-free parking benefits. For 2012, mass transit benefits no longer enjoy parity with the parking benefit. The 2012 amount for mass transit benefits eligible for tax-free treatment is $125 per month; while the parking benefit amount is set at $240 per month.

7. Deduction for Mortgage Insurance Premiums

The deduction for mortgage insurance premiums expires at the end of 2011. This deduction will not be available for 2012 unless renewed by Congress.

8. Sales Tax as an Itemized Deduction

The optional sales tax deduction expires at the end of 2011. This deduction is available in lieu of the deduction for state and local income taxes, and is particular valuable for taxpayers who live in states with no income taxes.

Continued...

New Downtown Miami $3 Billion Dollar Development

New Downtown Miami $3 Billion Dollar Development Expected to Revolutionize Miami Area Real Estate

Everybody on the South Florida real estate market can’t seem to stop talking about Resorts World Miami, a planned development that will feature hotel,  convention, entertainment, restaurant, retail, residential and commercial space.

Back in May, the Genting Group bought about 14 acres of downtown Miami for $236 million.
That price is just a drop in the bucket, however, when you consider that the company is investing  $3 billion for the new development.
Continue reading to learn more about this incredible downtown Miami development – which some say is rapidly becoming one of the top five projects being built in the world.

South Florida Real Estate is About to Get a Major Facelift

The company Genting has big plans for their recently purchased downtown Miami site.  In fact, they hope the development solidify’s Miami’s reputation as one of the leading tourism locales in the world.
What’s more, this project will have a phenomenal impact locally by creating thousands of construction-related jobs as well as permanent jobs.
And recently, Genting announced that Resorts World Miami will be 3 million square feet bigger than originally announced.  That’s nearly 10 million square feet, filled with such amenities as:

• 700,000 square feet of convention and meeting space
• 200,000 square feet of ballroom
• A super-luxury hotel, a contemporary hotel, a family hotel and a conventional hotel – totaling more than 5,200 rooms
• Two residential towers with about 1,000 units
• 250,000 square foot luxury retail center
• More than 50 restaurants
• Lounges, bars and nightclubs
• Possibly even a casino!

According to one recent news article, Resorts World Miami will feature several outdoor terraces as well, including a 1,000-foot-long, 3.6 acre outdoor lagoon on one of the tower’s rooftops.
This project is so amazing, it’s hard to wrap one’s head around it.
But suffice it to say, when complete, this project will not only reshape Miami’s skyline, but the whole South Florida real estate market as well.

South Florida Real Estate Experts

It will still be some time before residents are able to move in to a unit at Resorts World Miami.  If you’d like to learn more information about this amazing development in the interim, however, contact me.
As your South Florida real estate expert, I’d be happy to answer any questions you might have as well as let you know about available listings at some of our other South Florida residential communities, including:

• Hamptons South
• Hidden Bay
• One Island Place
• Peninsula I
• Peninsula II
• Sunny Isles Beach Ocean One
• Sunny Isles Beach Ocean Two
• Sunny Isles Beach Ocean Three
• Sunny Isles Beach Ocean Four
• And others!

Source: http://blog.buysouthflorida.com/30/new-downtown-miami-3-billion-dollar-development-expected-to-revolutionize-miami-area-real-estate/

The Best Time of Year to Buy Anything

Gym Memberships: Snag Back-To-School Bargains

We all know about the January deals, but September, when kids go back to school and parents are free to work out, is also a good time to get a discount. Live in a college town? Gyms will often slash fees during the summer, while gyms in resort towns do so during the off-season. Pay for an entire year up front, and many clubs will tack on a few extra months for free.

Car Smarts: Wait for Fall

October and November are ideal months to get a great deal on current model year vehicles, says Michael Waterman, executive editor of Vehix.com. Next year's models are already in stores, and dealers are anxious to move the older—but still new—cars off their lots. Manufacturers will often help with bigger incentives, cash-back programs and low interest rates.

Another way to secure a great deal on a new car is to know when a particular model is being replaced by an updated version. For instance, in 2011, Ford replaced the old Explorer with a completely redesigned crossover, and Honda updated the popular Civic with a new model. "Smart buyers realize these new-model updates often translate to deep discounts on the current models," says Waterman.

You also have a better chance of getting deals toward the end of the month. "Dealers might be a car or two short of a monthly sales quota that will give them a big bonus from the manufacturer," says Philip Reed, senior consumer advice editor at Edmunds.com. "That's why they'll discount the car to you—whatever they lose on the deal, they'll make up in their bonus."

Gadgets: High Tech for Low Prices

Have your eye on a new digital camera or MP3 player? Ask the store manager when a newer model will be released (often October and November). Beforehand, companies tend to slash prices on the older models, or bundle the item with extras, like a free printer. Here's why: Stores close out "old" inventory just before getting the newest gadgets in time for Christmas, according to Kaplan.

Home Renovations at the Beginning of the Year

Michael Kaplan, author of The Best Time to Do Everything, says January is the slowest month for contractors - and when they tend to be the most negotiable on fees.

Fresh Flowers: Avoid the Holiday Rush

Sending a floral bouquet for Valentines Day, Mother's Day or another holiday? Order at least a week beforehand, and have it delivered two or three days early to avoid the holiday markup—typically 10 to 20 percent. During non-holiday weeks, shop on Tuesdays, often the slowest sales day of the week. Also be sure to ask the florist to make a bouquet using whatever flowers are in season. As with produce, you’ll get the best deal on what’s growing now and it will also be the best quality.

Jewelry: April, July and August

Why? Jewelers will negotiate in April (after tax time), and in July and August (because there are no gift-giving holidays in those months)

The Two Key Times of Year to Buy Furniture

The best time to buy furniture is typically January or July, says Jaclyn Hirschhaut, vice president of the American Home Furnishing Alliance. Since new furniture styles hit the showroom floor twice a year (in February and August), stores will slash prices on older merchandise in order to make room for new arrivals.

Best Time of Week to Get a Haircut or Manicure Is...

Many salons advertise discounts (up to 50%) for early-week appointments; nail salons in some neighborhoods also cut prices on Monday, Tuesday, and Wednesday.

Groceries and Produce

Taylor Hough shares her best-buy calendar, which she first compiled for Frugal Living for Dummies. Hint: Go with what's in season.

January: turkey, apples, grapefruit, oranges, and pears

February: candy and chocolates (after Valentine's Day)

March: frozen food

April: broccoli, cauliflower and eggs

May: soda, hot dogs, hamburgers, buns, asparagus, and pineapples

June: dairy products and tomatoes

July: berries, corn, cherries, squash, watermelons, cantaloupes, tomatoes, plums, peaches, and nectarines

August: squash, green peppers, lettuce, berries, apples, peaches, apricots, and fresh fish

September: apples, broccoli, cauliflower, and canned goods

October: pumpkins, cranberries, grapes, oranges, sweet potatoes, and yams

November: turkey, sweet potatoes, yams, and post-Halloween candy

December: oranges, apples, and grapefruit

Read more: http://www.oprah.com/money/Best-Time-of-Year-to-Buy-TVs-Computers-Jewelry-Gym-Memberships/6#ixzz1fgwpweYt