Update for 2012 for investment gains and losses.

The IRS has come up with a new tax form. Imagine that! The new form is 8949 and it will accompany the Schedule D for reporting gains and losses on investments like stocks and bonds.

The newly revised 1099B from your stock broker will now include the acquisition date, cost, short and long term gains and losses and will include any wash sales. Sounds great! The bad news is the information is only available for investments purchased in 2011 and after. Don't throw out those old broker statements yet.

Also new for 2011 is the basis for inheritated assets will now be the fair market value as of the date of the decedients death. That means if Uncle Bill dies and leaves you shares of Ford, your value of the shares is the value on the day Uncle Bill died. If Uncle Bill paid $2 per share and they are now worth $40 you only pay tax on the profit over $40. If Uncle Bill paid $40 and the stock now sells at $2 no one gets to take the loss.