Amending Partnership Agreements – By John R. Bullis, CPA

Kim Pilant John's Articles

David Bruner and Eneas Kaner were equal partners in a partnership in Arizona. They had an original partnership agreement that had been amended five times over the years. In 2011 and 2012 the partnership paid large amounts to a defined benefit pension plan with 92% of the 2011 contribution and 100% of the 2012 contribution allocated to Mr. Bruner. IRS …

Tally Sticks – Early Internal Controls – By John R. Bullis

Kim Pilant John's Articles

Internal Controls are a process to provide reasonable assurance on the efficiency and effectiveness of business operations as well as giving reliability of financial reporting and compliance with various laws. All publicly traded companies have internal control requirements since 2002 when the Sarbanes-Oxley Act was passed by Congress. The beginning of double-entry bookkeeping is thought to originated by Luca Pacioli …

Choose Your Business Entity Carefully – By John R. Bullis

Kim Pilant John's Articles

Paul and Irvin Barnhart (brothers) claimed their “C” corporation (separate entity that pays its own taxes) was only their agent and losses in 2010, 2011 and 2012 were deductible on their individual returns, not the corporation returns. IRS disagreed. IRS disallowed the individual return losses and assessed accuracy-related penalties. The Tax Court held a trial and decided IRS was correct. …

What is “Step up in Tax Basis”? – By John R. Bullis

Kim Pilant John's Articles

A special tax benefit to save future income taxes is known as the “Step Up in Tax Basis”. This happens when someone dies and leaves stocks, bonds, personal property and real estate to the heirs. For example, suppose Joe bought a stock for $ 1,000 years ago and still has it when he dies. If the fair market value of …

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 …

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 …