Did you know that almost everything you own and use for personal or investment purposes is a capital asset? Capital assets include a home, household furnishings and stocks and bonds held in a personal account. When a capital asset is sold, the difference between the amount you paid for the asset and the amount you sold it for is a capital gain or capital loss.

Here are ten facts from the IRS about gains and losses and how they can affect your Federal income tax return.

1. Almost everything you own and use for personal purposes, pleasure or investment is a capital asset.
2. When you sell a capital asset, the difference between the amount you sell it for and your basis – which is usually what you paid for it – is a capital gain or a capital loss.
3. You must report all capital gains.
4. You may deduct capital losses only on investment property, not on property held for personal use.
5. Capital gains and losses are classified as long-term or short-term, depending on how long you hold the property before you sell it. If you hold it more than one year, your capital gain or loss is long-term. If you hold it one year or less, your capital gain or loss is short-term.
6. If you have long-term gains in excess of your long-term losses, you have a net capital gain to the extent your net long-term capital gain is more than your net short-term capital loss, if any.
7. The tax rates that apply to net capital gain are generally lower than the tax rates that apply to other income. For 2010, the maximum capital gains rate for most people is 15%. For lower-income individuals, the rate may be 0% on some or all of the net capital gain. Special types of net capital gain can be taxed at 25% or 28%.
8. If your capital losses exceed your capital gains, the excess can be deducted on your tax return and used to reduce other income, such as wages, up to an annual limit of $3,000, or $1,500 if you are married filing separately.
9. If your total net capital loss is more than the yearly limit on capital loss deductions, you can carry over the unused part to the next year and treat it as if you incurred it in that next year.
10. Capital gains and losses are reported on Schedule D, Capital Gains and Losses, and then transferred to line 13 of Form 1040.

If you haven’t received your W-2, follow these four steps:

1.  Contact your employer if you have not received your W-2. Contact your employer to inquire if and when the W-2 was mailed. If it was mailed, it may have been returned to the employer because of an incorrect or incomplete address. After contacting the employer, allow a reasonable amount of time for them to resend or to issue the W-2.

2.  Contact the IRS. If you do not receive your W-2 by February 14th, contact the IRS for assistance at 800-829-1040. When you call, you must provide your name, address, city and state, including zip code, Social Security number, phone number and have the following information:

• Employer’s name, address, city and state, including zip code and phone number

• Dates of employment

• An estimate of the wages you earned, the federal income tax withheld, and when you worked for that employer during 2010. The estimate should be based on year-to-date information from your final pay stub or leave-and-earnings statement, if possible.

3.  File your return. You still must file your tax return or request an extension to file April 18, 2011, even if you do not receive your Form W-2. If you have not received your Form W-2 by the due date, and have completed steps 1 and 2, you may use Form 4852, Substitute for Form W-2, Wage and Tax Statement. Attach Form 4852 to the return, estimating income and withholding taxes as accurately as possible. There may be a delay in any refund due while the information is verified.

4.  File a Form 1040X. On occasion, you may receive your missing W-2 after you file your return using Form 4852, and the information may be different from what you reported on your return. If this happens, you must amend your return by filing a Form 1040X, Amended U.S. Individual Income Tax Return.

     Markham Norton Mosteller Wright & Company, P.A. announces that firm partner, Karen Mosteller has accepted a seat on the inaugural advisory board of the Small Business Development Center at Florida Gulf Coast University.

     For years, Mosteller has volunteered as a program speaker for the Small Business Development Center. Topics of her speaking engagements include writing business plans, operational reviews, bookkeeping, understanding financial statements, budgeting and financial statements and tax basics.

   Mosteller is the consulting and technology partner with Markham Norton Mosteller Wright & Company. She joined the firm in 1986. She is a certified public accountant and a certified healthcare business consultant. She is a graduate of the University of South Florida, Fort Myers. Mosteller assists business clients improve their processes, tighten their bottom line and improve profitability.

   “We are ecstatic to have Karen as a member of our inaugural SBDC advisory board. Karen has been a staunch supporter of the SBDC program and small business owners in SW Florida. She has presented SBDC seminars and workshops for over 15 years and will be a great contributor to our newly-formed advisory board,” stated Suzanne Specht, Assistant Director of the SBDC.

   Markham Norton Mosteller Wright & Company P.A. is a certified public accounting and consulting firm with offices in Fort Myers and Naples. They offer a wide range of services including business consulting, technology consulting, tax preparation and planning, litigation, mediation, forensic accounting and elder services. For more information about the firm, call 239-433-5554 or visit www.markham-norton.com.

Since the State of Florida has borrowed funds from the federal government to pay unemployment compensation benefits, and the loans will not be repaid by January 1, 2012, the state will have to pay interest on the funds. All contributing employers are required by law to pay a proportionate share of the federal interest payment on the funds borrowed through a special assessment. The amount is based on the employer’s reported taxable wages for the fiscal year ending June 30, 2010

The Department of Revenue is mailing an assessment notice to Florida employers informing them of their proportionate share. Employers should receive this notice (Form UCT-27Fi) by the end of February. Payment is due by June 30, 2011.

If you are working with a third party payroll service, we suggest that you contact your payroll representative to determine if they will be handling the assessment payment on your behalf. You may learn more about the special assessment here: http://dor.myflorida.com/dor/taxes/pdf/ut_interest.pdf.

If you have questions regarding this information, please contact our office at (239) 433-5554. You may also visit us on the web at www.markham-norton.com.

June 30, 2011