Who really needs a Reno CPA? Well, there a lot of people out there who might not think they do. However, they might want to consider that CPAs are experts in tax codes and regulations, and they are not. It is quite amazing how often a CPA can find a tax write-off that was overlooked. Take the three write-offs mentioned later in the article. Would you have known about these?
CPA
CPA stands for Certified Public Accountant. Requirements vary by state, but in general, a CPA must have a degree in accounting, have a set amount of experience, and demonstrate expertise by passing a comprehensive and rigorous exam. As a result, they are experts in tax codes and regulations, which considering how complex the US tax code is – is impressive. Certainly, if there is a tax write-off to be found, a Reno CPA will find it.
Smart Move?
Of course, taxes are often a sore subject for many people. Not only is Uncle Sam demanding a piece of the pie, but it costs money to have someone tell you how much. As a result, many people look to alternative sources for preparing their taxes such as online software or under-qualified tax accountants. However, is that really a smart move? Keep in mind that Reno CPAs are experts in tax rules and regulations. For example, would the average American know about some of these more quirky tax write-offs?
Making Allowances
Tired of paying your child an allowance and getting nothing in return? Would it help if that allowance could be used as a tax write-off? It can be if the parent is the sole proprietor of his or her own business. In this case, parents can hire their own children, and not pay any payroll taxes. Plus, the wages can be deducted on their sole proprietorship. So, basically, it’s like deducting the child’s allowance, and the parent might just get some work out of the kid.
A Noteworthy Loophole
For most parents, listening to their child learn to play the clarinet is a painful experience. However, a CPA might use that clarinet and the lessons as a tax write-off. That’s because orthodontists claim that playing the clarinet can help correct an overbite. That makes it a medical expense. So while the Reno CPA may not make listening to the clarinet any easier, he or she can make paying for it a little easier.
Honest Crooks
According to the IRS, it’s okay to be a criminal as long as the “wages” are reported as self-employment income. For the thieves out there, however, there’s a little loophole that only a CPA would know. Thieves are required to report and pay the fair market value tax on all merchandise that is… ummm… acquired. However, if the items are returned, the thief can get out of paying the taxes. Plus, he or she will get free room and board at the county jail too.
Okay, so most people won’t fall into the last category, but it does prove the point that a Reno CPA will know every loophole out there. So whether you are a sole proprietor, a parent of a child with an overbite, or a thief, a CPA can make sure that your taxes are done right and every tax write-off is used to maximize the return. In the end, the tax savings will more than pay for the services of a CPA.
Reno’s Best CPA,
Tim Nelson