There is a new Form 8949 for reporting stock sales this year.  If you acquired stock in 2011 and sold it  before the end of the year, the broker must report your cost basis for the securities on Form 1099-B.  On all other sales,only sales will be reported and you will have to determine your cost basis

The Make Work Pay Credit ($400) expired at the end of 2010 and was not renewed.

The home energy credits have been completely revamped.  The credit for energy efficient home energy improvements such as storm windows, insulation, furnaces and water heaters is reduced to 10% with an overall limit of $500 that is reduced by prior-year credits, plus specific property limits such as $200 for exterior windows and $150 for a furnace. 

The American Opportunity credit has been extended through 2012.  The credit is up to $2,500, 40% of which is refundable.

The $250 educator deduction has been extended through 2011.

The special capital gains rates have been extended through 2012.

The elective deferral limit for employee contributions to 401(k) and similar plans will be $17,000, or $500 more than the limit for 2011. Those who are at least age 50 by the end of the year can add another $5,500; this amount is unchanged from 2011

If you use your car, truck, or van for certain purposes other than personal reasons, you can deduct the related costs or use an IRS-set mileage rate. The mileage rate for 2012 is:

• 55.5 cents per mile for business driving.
• 23 cents per mile for medical or moving purposes.
• 14 cents per mile for charitable purposes

The estate tax laws have been reinstated for 2011 and 2012 with an increased exemption of 5 million dollars.  The annual gift tax exemption remains at 13,000 per donee.  Special rules apply for deaths in 2010.

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