336. Tax Time x 4

Please bring on the Flat Tax! I just installed my H&R Block at Home tax program and cranked in some numbers to estimate my 2011 taxes. I do this every December to determine if I can take more gains or need to take more losses. Well, 2011 begins the broker's reporting of Cost Basis for stocks bought in 2011 and sold (bond cost basis reporting begins in 2013). So what are your in store for when reporting your gains/losses you ask? A nightmare!

For each stock sold you must first tell the IRS if the broker reported it on the 1099-B form. Then you need to tell the IRS what is in some new boxes on the 1099-B which indicates whether cost basis was included (i.e., stock bought in 2011) or not (bought before 2011). So, you have 3 possibilities: (1) Long term gain/lost for stock bought before 2011, (2) Short term gain/lost for stock bought before 2011, (3) Short term gain/loss for stock bought in 2011. For (3) you then get to answer the cost basis questions and any differences you determine (e.g.,if you have REIT that pays out non-taxable dividend and you have to adjust the cost basis accordingly but the broker's system didn't do it).

Anyway, the time to complete will probably go up about 4 times from of before for gain/loss reporting! Don't you love tax forms?

I am so-o-o-o-o in favor of a flat tax. And the no tax reporting under it is NOT the only major benefit. Please Goggle the Internet for "flat tax" and learn the benefits, such as, NO MORE IRS overhead (imagine the savings to your pocket if that IRS is disbanded entirely); no more TAX accountants and lawyers; no more TAX time headaches and stress. Now imagine how more efficiently corporations can function and run and that benefit coming back to you as reduced product/service costs. How about NO MORE Congress bickering and loop holes or discussions. So many cost benefits! So, please do some homework. Look also at Amazon.com for books.