Start Up Costs For Business Reduced- For 2011, business must revert back to the $5,000 allowable initial start up cost deduction (rest to be amortized over 180 months). The initial start up deduction used to be $10,000 ofr 2010.
Gift Tax Exclusion Amount- For gifts made in 2011 and 2012, the gift tax is reunified with the estate tax, with an exclusion amount of $5 million. [IRC §2631(c)]
Spouses Benefit In Death- The executor of a deceased spouse’s estate can transfer any unused estate tax exclusion amount to the surviving spouse.
Paying Tax On Mortgage Benefits- New Form 1098-MA is used by government agencies to report to the IRS and to homeowners the total amount of mortgage payments made with funds from the Housing Finance Agency Innovative Fund for the Hardest Hit Housing Markets or the Emergency Homeowner Loan Program. (See Notice 2011-14 for details.)