Innocent Spouse Relief is not Always Granted – By John R. Bullis

Kim Pilant Uncategorized

Mindy Lessard was married to Mr. Tomko in 2013 and they filed a joint tax return. However, two items of income were not reported on the return. There was $14,936 of cancellation of debt income that was his and $20,502 of distributions to him from his retirement plan. They were divorced in 2014. It seems they did not live in …

IRS Math Error Notices are not Audits – By John R. Bullis

Kim Pilant John's Articles

IRS uses several computer programs to screen all tax returns and check for math or clerical errors. If you receive a notice, respond within 60 days or IRS will assume you agree with the notice. A math error notice is not an audit. The notice does not usually mean you owe more taxes. IRS may need additional information. Perhaps a …

Computing New Tax Law Business Deductions – By Kelly J. Bullis

Kim Pilant Kelly's Articles

The New Tax Law officially known as “Tax Cuts and Jobs Act of 2017” has a section in there for non-C Corporations to deduct up to 20% of their “qualified business income.” In the CPA universe, we are now affectionately referring to that as the “Section 199A deduction.” In my simple world, there would be one tax rate applied to …

Key Documents Your Adult Child Should Have – By John R. Bullis

Kim Pilant John's Articles

You probably realize that when your child becomes 18 years old, your child is a legal adult in Nevada. A recent article in the Wall Street Journal pointed out it is wise for the 18 year old to have some basic legal documents. The Power of Attorney for Health Care, the HIPAA authorization and probably also the Power of Attorney …

Plan Now for Your Business Seccession – By John R. Bullis

Kim Pilant John's Articles

It is not easy to take the time now to plan for the sale, gift or transfer of your business. Just running the business is hard enough and time consuming. However, meeting with a team (attorney, CPA and valuation expert) now can help position your business for the future. Frequently the meeting with your team will suggest some actions to …

Thoughts on the New Tax Law – By John R. Bullis

Kim Pilant John's Articles

I was pleasantly surprised to see Congress pass the 2017 Tax Cuts and Jobs Act, before the year was over. Now, we all need time to understand the 503 pages of the New Tax Law. It is hoped it will improve the tax treatment of businesses in the United States. Many more businesses (those with less than $25 million of …

No More Employee Business Expenses – By John R. Bullis

Kim Pilant John's Articles

As of Jan. 1, 2018, the new tax law, Tax Cuts and Jobs Act, takes away the deduction for employee business expenses that were claimed as miscellaneous itemized deductions on Schedule A of form 1040. Some folks paid and claimed a deduction for business travel and other business expenses they incurred as an employee that were not reimbursed by their …

To Be or Not To Be In Business in 2018 – By Kelly J. Bullis

Kim Pilant Kelly's Articles

Once in a long while, there is one of those perfect convergences of all the right ingredients for an explosive business opportunity environment. We’re in one now! Interest Rates are still low; Real Estate is still quite affordable; People are moving into Western Nevada at a faster and faster rate; The Tahoe Reno Industrial Center is booming; We finally have …

Antiques Used In Your Business – By John R. Bullis

Kim Pilant John's Articles

Suppose as a business owner, you decided you need a better desk. You know the entire cost of the desk can be a business expense with the cost all claimed in the year of purchase and when it was placed in service. Section 179 election to expense the full cost allows that immediate, full deduction, even if you pay for …