WHAT IS THE “NANNY TAX”? By John R. Bullis

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It is not enough to pay income tax and when you die there may be a death tax. If you have household employees (not independent contractors) you as the employer must withhold and pay FICA taxes on their wages if the cash wages paid during 2014 or 2015 total $1,900 or more. The employment taxes for household employees is reported …

IT’S GREAT TO LIVE IN NEVADA! By John R. Bullis

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The federal death tax exemption (amount each person can leave behind at death) is increased to $5,430,000 in 2015.  Many folks think that is all there is to be concerned about.  However if you live in some of the other states you may have a state death (estate) tax. Massachusetts levies a state death tax if the total taxable assets …

WHAT IS A “WORTHLESS SECURITY”? By John R. Bullis

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A security (stock or bond) that becomes worthless during the tax year is treated as if it had been sold on the last day of the tax year.  If it is a capital asset, the resulting loss is usually a capital loss that is subject to various limits. Capital losses first offset capital gains (both long term and short term) …

FIRST TIME PENALTY ABATEMENT By John R. Bullis

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IRS charges many different penalties.  Failure to File (on time, including extensions) can be 25% of the tax due.  Failure to Pay is more like additional interest.  Congress felt too many taxpayers were not paying IRS because the cost of the interest was low compared to getting a bank loan. The Failure to Deposit penalty relates to payroll taxes not …

MEDICAL MARIJUANA BUSINESS HAS LIMITED DEDUCTIONS By John R. Bullis

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Martin Olive quit college and opened a medical marijuana dispensary in San Francisco in 2004.  He reported $65,000 of income in 2004 and $34,000 of income in 2005.  All of his customers were recipients under the California Compassionate use Act of 1996. IRS audited his returns and used the “ledgers” Olive produced at trial to compute his gross income in …

Warm Hugs = Smart Business

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So… I have discovered a major down-side to spending a few days in Disneyland I know… I know… sounds like blaspheme lol But seriously! You get spoiled! They have made happiness and the desire to make their customers feel welcome such a natural part of their culture that suddenly, the customer service completely sucks everywhere else you go! At least …