It also contains a Roadmap that provides a method of quickly identifying potential tax saving opportunities by simply reviewing a client’s or prospective client’s Form 1040. The Guide, along with its numerous practice aids, provides the tools necessary to meet your client’s individual income tax planning needs in a practical and efficient manner.

Here are some of the key update features contained in the latest edition:

• New Legislation. The Small Business Jobs Act of 2010 (2010 Small Business Act) and the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (2010 Tax Relief Act) were enacted in 2010 and cover a wide range of tax provisions. Section 179 deduction limits were increased and Section 179 was expanded to include certain real estate property; 100% bonus depreciation is allowed for qualifying property; shorter recovery periods for certain real estate and numerous other deductions and credits that had expired at the end of 2010 were extended. The Guide covers the relevant provisions of this recent legislation, including examples and planning tips for practical guidance.
• Health Savings Accounts (HSAs). Nontaxable distributions from HSAs for over-the-counter medicines are now restricted. The Guide discusses the new restrictions and also covers the increased penalty tax on nonqualifying HSA distributions.
• Tax Planning for Divorce. Individuals involved in divorce situations can benefit from tax planning. Divorce considerations that have been expanded and enhanced in the Guide include the innocent spouse discussion of the “actual knowledge” requirement for the separate liability election, conflicting decisions in the courts regarding the two-year filing rule for equitable relief cases, and the deemed child support rule for contingencies related to the children.
• In-Plan Roth Rollovers. New guidance was released by the IRS for rollovers within certain Roth retirement accounts. The Guide covers these new rules that allow rollovers within Roth 401(k) accounts.
• Residences. A residence may be a taxpayer’s most significant single investment. High-income individuals often acquire second homes (vacation homes) for both investment and personal enjoyment. The Guide has expanded its discussion of planning around the personal usage of second homes to preserve available rental deductions. Also, the Guide covers significant changes made to the Nonbusiness Energy Property Credit by the 2010 Tax Relief Act