This Deskbook includes:

• Practical guidance in a key issue format that gives you and your staff quick answers to your questions.
• Over 265 key issues that answer the tough reporting questions; discussed and illustrated using authoritative references, real life examples, and filled-in forms.
• A unique Quick Reference Binder full of practice aids designed to save you time and money and place important information at your fingertips.

This Deskbook Covers:

• Filing Status and Exemptions
• Income and Adjustments
• Business, Farm, and Rental
• Depreciation and Autos
• Passive and Passthrough
• Gains and Losses
• Below-Market Loans
• Personal Deductions
• Tax Calculations
• Tax Credits
• Filing Matters
• And much more

Some of the key highlights in the 2012 edition include:

• Prior Year Legislation. Throughout, we incorporated changes and provided compliance guidance for provisions that are effective in 2012 from the Tax Increase Prevention and Reconciliation Act of 2005 (TIPRA), and the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (2010 Tax Relief Act).
• Foreign Financial Asset Reporting. For tax years beginning after December 19, 2011, certain individual taxpayers must file Form 8938 (Statement of Foreign Financial Assets) if they own an interest in designated foreign financial assets in excess of specific thresholds. The Deskbook identifies the individuals required to file Form 8938, lists the threshold amounts, explains the filing process, and notes the failure to file penalties. A chart comparing the differences between the foreign bank account reporting requirements (FBAR) with the foreign financial asset reporting requirements has been added to the Deskbook.
• Circular 230 and Tax Return Preparation Due Diligence. The Treasury Department’s Circular 230 documents the regulatory requirements enabling CPAs, attorneys, Enrolled Agents, and Registered Tax Return Preparers to practice before the IRS. The IRS is increasing its scrutiny of tax return preparers and the IRS Commissioner has stated that they will be looking more actively at preparers for compliance with Circular 230 and necessary due diligence practices. The Deskbook has added a discussion and various practice aids containing the guidance necessary to ensure compliance with Circular 230 and assist the practitioner with using best practices for exercising due diligence.
• Charitable Contributions. There have been several recent developments concerning the deductibility of charitable contributions, namely substantiation and validity of claimed deductions for conservation easements, donations of residences to fire departments for fire training, and substantiation of deductions in general for lack of proper donee acknowledgements and improper appraisals. The Deskbook has been updated with new guidance in this increasingly important area of charitable giving.
• Bonus Depreciation, Section 280F Limitations, and the Section 179 Deduction. For 2012, Bonus Depreciation is generally reduced from 100% to 50%, the Section 280F limitation for qualified vehicle depreciation has increased, and the Section 179 deduction limit is greatly reduced. The Deskbook has been updated to reflect the new Bonus Depreciation, Section 280F, and Section 179 limitations for 2012.
• Local Lodging Expenses. New regulations have liberalized the rules for deducting local lodging expenses for employees in the course of performing at their jobs. The Deskbook includes guidance explaining the regulatory requirements and safe harbor rules surrounding this new deduction.
• Home Mortgage Interest Limitation. Taxpayers are limited on the amount of home acquisition debt for purposes of deducting home mortgage interest. The Tax Court has ruled how this limit applies in certain less typical ownership situations. The Deskbook discusses how the home acquisition debt limit applies for unmarried taxpayers owning a home jointly, and married taxpayers filing separately.
• Start-up Costs for New Businesses. Individuals starting a new business often incur substantial expenses in the investigation phase before business operations begin. A special provision in the Internal Revenue Code allows an immediate (current) deduction for a limited amount of these costs. The Deskbook adds a discussion with reference to several court cases regarding when a business is considered to have begun, for purposes of currently deducting applicable start-up costs.
• Abandoning Business Property. When a taxpayer owns and abandons property used in a business, a loss deduction generally may be claimed. Oftentimes in the context of depreciable real estate, the ability to deduct a loss for abandoning a portion of a building is questionable and difficult to measure. The Deskbook has added a discussion of new temporary regulations released in December 2011 and effective January 1, 2012 that provide guidance on when a deduction can be properly claimed for business property abandonments.

Integration with UltraTax CS™
PPC’s 1040 Deskbook now integrates directly with UltraTax CS™. Quickly find the correct answers to your tax preparation questions--directly from your input screen! Simply click on the PPC icon on the UltraTax CS screen and the PPC Deskbook guidance and practice aids directly dealing with that input screen topic will display. Don’t spend valuable time keyword searching or browsing a table of contents for your answer. Clicking on the relevant link takes you directly to the information you need! For information on UltraTax CS or to view a demo of the integration with PPC Deskbooks on Checkpoint, visit http://cs.thomson.com/tax/quicklook.aspx.