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(951) 659-2145 - Idyllwild Town Crier

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Editor’s note: “Tax tips”<br />

appears weekly throughout tax<br />

season. Two tax professionals<br />

on the Hill alternately write<br />

the column. This week the<br />

column is authored by Stephen<br />

T. Peppler, E.A., C.F.P.<br />

About this time of year, we<br />

begin to collect all the information<br />

needed to properly file<br />

our income tax returns. Since<br />

it’s been a year, I have listed<br />

below some of the items you<br />

will want to look for:<br />

Your employer is required<br />

to send you your W-2 form<br />

by Jan. 31. If it looks wrong,<br />

contact your employer. If you<br />

can’t locate your employer,<br />

you’ll need to collect your<br />

pay stubs.<br />

You will need to locate<br />

the 1099-INT and 1099-DIV<br />

forms for each account that<br />

pays interest or dividends.<br />

Even tax-exempt interest must<br />

be listed on the return.<br />

Sales of stock, bonds or<br />

mutual funds are listed on<br />

Form 100-B. You will need<br />

to research your original cost<br />

and purchase dates for stocks<br />

and bonds and obtain a costbasis<br />

statement for the mutual<br />

<strong>Idyllwild</strong> Realty<br />

North Circle Office<br />

54295 N. Circle Dr.,<br />

<strong>Idyllwild</strong>, CA 92549<br />

<strong>951</strong>-<strong>659</strong>-2125 off.<br />

<strong>951</strong>-<strong>659</strong>-2235 res.<br />

<strong>951</strong>-316-5213 cell<br />

<strong>Idyllwild</strong> <strong>Town</strong> <strong>Crier</strong>, January 12, 2006 - Page 17<br />

It’s countdown to your tax return filing time<br />

funds you sold. If the company<br />

does not furnish you<br />

with a cost-basis statement,<br />

you will need to assemble<br />

a complete history of your<br />

time in the fund, including<br />

deposits, redemptions and<br />

reinvested dividends. Your<br />

financial planner should be<br />

able to help you with this.<br />

Form 1098 reports the<br />

interest you paid on your<br />

mortgage last year. If you<br />

refinanced last year, you will<br />

want to get form 1098 or the<br />

settlement statement showing<br />

the points you paid. If<br />

you have a seller-financed<br />

mortgage, you will need their<br />

Social Security number, name<br />

and address.<br />

You will need to know the<br />

date and amount of estimated<br />

taxes paid.<br />

If you sold property, you<br />

will need the settlement statement<br />

plus a record of the<br />

improvements made to the<br />

property over time.<br />

If you had childcare expenses,<br />

your preparer will<br />

need to know the name, address,<br />

telephone number and<br />

tax identification number of<br />

the provider, in addition to<br />

Tax tips<br />

By Stephen T. Peppler, EA, CFP<br />

the amount paid.<br />

Student loan<br />

payments are reported<br />

on form<br />

1098-E and tuition<br />

is reported on form<br />

1098-T. Both can<br />

be used to lower<br />

your taxes.<br />

You will want<br />

to assemble all the<br />

necessary records of your<br />

charitable contributions,<br />

both<br />

cash/check and<br />

non-cash. If your<br />

non-cash contributions<br />

total<br />

more than $500,<br />

you will need the<br />

date contributed,<br />

items donated, the<br />

receiving organization,<br />

its address, the value<br />

LET’S MAKE A DEAL!<br />

$419,000 MLS#2579<br />

Avoid bank charges, owner is carrying, or will consider<br />

lease or lease/option.<br />

of the items and how you<br />

determined it. If a single<br />

gift is more than $250, you<br />

should have a receipt from<br />

the charity. If you donated a<br />

car, consult your preparer for<br />

special requirements.<br />

If you are receiving Social<br />

Security, you will need form<br />

1099-SSA that lists your<br />

gross benefits before deductions.<br />

If deducting business mileage,<br />

make sure your log showing<br />

dates, miles driven and<br />

business purpose is in order.<br />

This expense is a frequent<br />

audit target.<br />

When you make a business<br />

purchase of equipment,<br />

furniture or vehicle for your<br />

business use, you need to list<br />

these items separately and<br />

show the date bought.<br />

January is a good time to<br />

get started on the sometimedemanding<br />

task of assembling<br />

your records. It is a good time<br />

to contact your tax preparer<br />

to ask questions regarding the<br />

records and documentation<br />

required to ensure you receive<br />

all the deductions for which<br />

you are entitled.<br />

MAGGIE MORPHETT<br />

FROM PEAKS TO CREEKS, FOR A<br />

WORRY-FREE<br />

TRANSACTION — USE ME!<br />

FERN VALLEY CHARMER<br />

$299,900 MLS#2667<br />

Facts and online discussion<br />

about your water:<br />

hillwaterissues.blogspot.com<br />

Local Unification<br />

Gadfly Merchandise:<br />

www.cafepress.com/HillLugNuts<br />

Brand, spanking new construction in great Fern Valley<br />

location within minutes of hiking trails. Two bedrooms,<br />

two baths, forced-air heating and air conditioning, hardwood<br />

and carpeting, all new.<br />

BANANA BELT VIEWS<br />

LISTED AT $379,000<br />

MLS#2569<br />

This cozy cabin with two beds, 1.5 baths & laundry is set<br />

on over a quarter of an acre within walking distance of<br />

the Village and hiking trails. Cute country kitchen/dining<br />

opens to deck and views of the mountains. Living room<br />

has vaulted ceiling, French doors and newer wood burning<br />

stove.<br />

LOVELY CEDAR HOME WITH VIEWS<br />

LISTED AT $449,900<br />

MLS#2681<br />

Lovely home with knotty pine and vaulted ceiling. Open<br />

plan living leads to sliders and fabulous deck to enjoy the<br />

views. Two beds, two baths on main level. Lots of lower<br />

level space for third bedroom, hobbies, workshop, etc.,<br />

F/A & A/C, plus fenced area for pets.<br />

Beautiful view property — enjoy San Jacinto & Lily<br />

Rock from house and hot tub on deck. This 4 bedroom,<br />

3 bath, cedar-constructed home also features<br />

solarium, large living/dining/kitchen for gracious living<br />

& entertaining plus attached garage & workshop.<br />

ELEGANT CEDAR MOUNTAIN HOME<br />

LISTED AT $575,000<br />

MLS#2567<br />

Cedar-sided home overlooking Dutch Meadows. Huge<br />

country kitchen with 2 ovens + built-in microwave.<br />

Formal dining (presently used as office); central<br />

vacuum, 2 airtight wood stoves + F/A; kids’ playroom<br />

in attic; new 1,700 sq. ft. garage, circular driveway,<br />

room for RV parking; approx. 1 acre all fenced.<br />

Wonderful wildlife-friendly setting in the midst of lovely<br />

trees and boulders. Enjoy your morning coffee with<br />

birds and squirrels tapping at your window.

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