evans nelson & company

Reno CPA Tim Nelson Describes Why He Became A CPA

A 150 hours of schooling, passing the CPA exam, and continued education… But why did I want to be become a Reno CPA? Better yet, why did I want to open my own office?

Growing up I always had a mind for numbers and was interested in business. I started my entrepreneurial ventures at a young age. When I was 13, my brother, who was good in sports, started playing in Babe Ruth League. Since he was a better athlete than I was, I decided to run the snack bar instead of playing. This was a great way to make money, and learn about profit potential. Now, at this point I did not have a clue that being a Reno CPA was in my future. I just knew that I was comfortable with numbers and enjoyed business.

After graduating from Hug High School, I went on to the University of Nevada, Reno. It was there, in the accounting department, that I was guided into the world of accounting. My professors were great and really did help steer me in this direction. Being a Reno CPA made sense. It was everything I enjoyed, along with the ability to help individuals and businesses.

When I started off, I was working with larger firms, but I started to notice a problem. A lot of the CPA firms that I worked for were all about making sure the numbers were right, but not as worried about the client. I decided that I had to run my own firm and do things in a more personal manner than the larger accounting firms.

As a Reno CPA, I like the mentoring aspect of the business. My personality is such that I really like to, “think outside the box,” it is such a cliché but it really helps them in areas other than accounting and the numbers. Being a CPA is a great way to help people while working with numbers and business. Yes, there was a lot of schooling and a test to get here, and I continue to educate myself yearly, but I love what I do.

Reno’s Best CPA,

Tim Nelson

Reno CPA Tim Nelson Describes Why He Became A CPAencpaswp2022-11-29T14:18:08-07:00

A CPA in Reno Explains The Gift Tax

As a CPA in Reno, I understand that you may be having a hard time understanding all the different taxes that are out there. One of the taxes that is not understood is the gift tax.

The IRS defines the gift tax as, “a tax on the transfer of property by one individual to another while receiving nothing, or less than full value, in return. The tax applies whether the donor intends the transfer to be a gift or not.”

Like many taxes, there is an annual exemption for the gift tax. The exemption is $13,000. Therefore, you can give any individual up to $13,000 with no problem. If you give them more than $13,000 in a year then you have to file a special gift tax return.

There are many questions about the gift tax. I will do my best as a CPA in Reno, to answer some of them, but for more answers visit the IRS’ website.

Now that you know what a gift tax is, you might be worried about being taxed for something that you have given. Do not panic. There are gifts/donations that are excluded from this tax. First, remember that there is an exemption; you can give up to the exemption amount without having to worry. Second, if you pay medical or tuition for someone, it is excluded. Third, gifts to your spouse are not included. Fourth, a gift to a political organization is not included. In addition, gifts to certain charities are not included.

If you are worried about what you may owe in taxes, see if your gift falls under one of these categories. Also, if you are the recipient of the gift do not worry. The donor usually pays the tax associated with the gift.

The gift tax is fairly straightforward, but the best advice I can provide is to work with a CPA in Reno if you think you are going to gift a substantial amount of money. You do not want to give a gift or do a good deed and then have the IRS hounding you because you did not pay the appropriate taxes.

Reno’s Best CPA,

Tim Nelson

A CPA in Reno Explains The Gift Taxencpaswp2022-11-29T14:18:58-07:00

Certified Public Accountant In Reno Discusses The Hope Credit

One of the largest credits available for college students is the Hope Credit. This credit applies to your first two years of post-secondary education and is just one of the many credits available. To make sure you are getting all the credits available to you call a certified public accountant in Reno today.

According to the IRS “you can claim the Hope Credit if all three of the following requirements are met: You pay qualified tuition and related expenses for the first two years of post-secondary education. You pay the tuition and related expenses for an eligible student. The eligible student is you, your spouse, or a dependent for whom you claim an exemption on your tax return.”

The eligible expenses for the Hope credit are tuition, activity fees, books, school supplies, etc… The basic way to decide if something qualifies is that it has to be paid to the institution because of enrollment. Thus, books and supplies can be included if they are necessary for a class.

If you are a college student or one of your dependents is a college student, then you need to make sure you think about the Hope Credit when it comes time to file your taxes. You can deduct up to $2,000 for your college expenses.

On top of this, there are some modifications to the credit, which are provided by the American Opportunity Tax Credit. The IRS states that for tax years 2009 and 2010, the American Opportunity Tax Credit modifies the Hope Credit as follows:

1. The maximum amount of the credit is increased to $2,500.00.

2. The credit can now be claimed for the first 4 years, not 2, of postsecondary education.

3. The modified adjusted gross income limitations are increased.

4. Qualified expenses include course materials.

5. Generally, 40% of the Hope Credit is now refundable (up to $1,000).

If you are a college student, or one of your dependents is, then you need to contact a certified public accountant in Reno today and start deducting your college expenses.

Reno’s Best CPA,

Tim Nelson

Certified Public Accountant In Reno Discusses The Hope Creditencpaswp2022-11-29T14:19:10-07:00

Accountant in Reno Helps You Understand State Taxes

Understanding how state taxes apply to individuals and corporations can save you or your business a good deal of money. Of the 50 states, 45 of them have a tax on individuals or corporations. Each state has different regulations about how these taxes apply to residents and non-residents. To make sure that you are filing the proper tax forms you should contact an accountant in Reno.

Here in Nevada we do not have an individual or a corporate income tax. Knowing which states have these taxes is important if you want to relocate. As an individual or a business, you can change your economic situation by moving from a state that has these taxes to one that doesn’t, and vice versa. Moving is not the only reason to understand state taxes.

If you are business owner and decide it is time to expand, you need to understand taxes. The same goes for individuals who provide professional services in multiples states. You need to know that states have different rules regarding CITUS, which governs whether you are subject to state income tax in that particular state. The best way to make sure you are not forgetting to pay taxes in certain state is to call an accountant in Reno today.

As a general rule of thumb, if you are providing professional services within that state you are going to be subject to state taxes. If this is the case your will have to prepare a non-resident return. This additional requirement while complicate your tax preparation, but is something you need to be aware of.

Because of the variety of state income and corporate taxes and the possible affect on your tax situation, you need to be aware of them. If you have questions about how they apply to you or your business, talk to an accountant in Reno.

Reno’s Best CPA,

Tim Nelson

Accountant in Reno Helps You Understand State Taxesencpaswp2022-11-29T14:19:14-07:00

Certified Public Accountant Tells You How To Write Off The Holidays

We are in between holidays and now is the time to hold those infamous office Christmas parties. If you are like most business owners, these can be fun, but can add a lot of stress to an already busy time of the year. You are focused on wrapping the year up financially and planning for next year. However, these parties might provide an opportunity to get some year-end write-offs. As a certified public accountant in Reno, it is my job to tell you about as many tax deductions as I can.

The first qualification for a tax deductible holiday party is that it must be for your employees. One of the big qualifiers for it is who attends. If the party is just for employees and their families along with the owners, then it will probably be considered a fully deductible event. If this is what a party can be, then what can it not be? It cannot be a party for your customers or for yourself. You can invite non-employees, but then the deduction gets complicated. It may be only partially deductible.

As a certified public accountant, I want to give you some tips that will help you if you are audited. Another thing to think about is the location of the party. You can have it anywhere, but a location other than your home is the best choice. Having it at an office or other venue will make it less controversial should you be audited in the future.

The most important part is making sure to keep the proper documentation. You need to keep all the receipts from the party. It is also a good idea to keep a list of the attendees and their relationships and take some photos at the party. You should keep this documentation for at least three years.

I just wanted to give business owners a different way to look at the holidays. If you want to have a deductible holiday party, than you should talk to a certified public account in Reno.

Reno’s Best CPA,

Tim Nelson

Certified Public Accountant Tells You How To Write Off The Holidaysencpaswp2022-11-29T14:19:20-07:00

Business Owners, Pet Deductions Are Limited But Possible

Business owners, you may be asking yourself if I am being serious. Can you really deduct your pet’s expenses? In most cases, you cannot deduct pet food and vet bills. However, I have had a couple of clients who have successfully deducted their pet’s expenses. If this is something you want to do, you should talk to an accountant in Reno, Nevada who has ample experience in tax preparation.

Let me start out by saying that this is something that we come across all the time, but rarely will fly with the IRS. Let me give you a couple examples of clients who deducted their pets and why they were able to do so.

The first example is a tile manufacturer. This client had a couple of German Shepherds who stayed in the shop all the time. My client deducted their food, water and vet bills. This client was actually audited and the deductions were upheld. The auditor let the deductions stand because the dogs were considered security for the evening.

Another case of a client who successfully deducted their pet expenses was a farmer/rancher. This client has a number of cats, and all of the expenses for the cats were deducted. The ranching operation was audited, but the auditor upheld the deductions because the cats keep the mice down in the barns.

Now let me give you an example of a case were pet deductions are not justified. We had one client who ran a gym. They have a couple of dogs who are always running around the gym and greeting customers. They argued that the dogs were used as advertising because all the clients would talk about them.

The rule for whether you can deduct something as a business expense is if it is ordinary, necessary and reasonable. In the case of the gym, it is not necessary or ordinary to be able to deduct pet expenses. If you think you may be able to deduct your pet related experiences, you should contact an accountant in Reno, Nevada and have them help you with your tax preparation.

Reno’s Best CPA,

Tim Nelson

Business Owners, Pet Deductions Are Limited But Possibleencpaswp2019-03-28T15:00:00-07:00

Accountant in Reno Provides Holiday Shopping Tips

This may be a couple weeks too late, but it is still important. During the holiday season or for any major celebration, it is common to pull out your trusted credit card and get to shopping. The problem comes at the end of the month or the beginning of next month when you get your credit card statement. As an accountant in Reno, I wanted to take a second to discuss holiday shopping.

Although you may feel compelled to buy everything on someone’s shopping list, you and your family could try some great alternatives this holiday season.

Set a Per Person Limit

Whether you are buying for mom, dad, your significant other or a friend, set a shopping limit. Talk with the person that you want to buy a gift for and come to an agreement on a shopping limit. This is a great strategy for a couple of reasons. First, it allows you to budget your holiday spending and, as an accountant in Reno, I am a fan of budgeting. Second, it forces you to shop. If you come to a $25 arrangement with somebody, what are you going to do? You are going to go and find the best gift or gifts that you can for that price. This means that you are going to shop smarter.

Draw Names

Another idea is to draw names. This idea is more applicable to families, but can work with a group of friends. Simply gather the family around, place each person’s name in the hat, and then draw. Whomever you draw is the person you will shop for. Having to shop for one family member means that you can spend more time on that person and afford to buy them something nicer than you would have if you had to shop for everybody.

Check Three Stores

Once you have your shopping list for each person you should go to three stores before you buy the item. Although you may think you have found the best deal, you never know what the next store will have.

Wait 24-48 Hours

Once you have found the item you want to buy someone, especially if it is a more expensive gift, you should wait 24 – 48 hours before purchasing it. With that said, make sure that the special will last that long.

My goal, as an accountant in Reno, is to help you save money and manage your finances. These are just a couple of tips to help you get through the holiday season.

Accountant in Reno Provides Holiday Shopping Tipsencpaswp2019-03-28T15:01:01-07:00

CPA In Nevada Versus Attorney, Who Do You Need?

As a CPA in Nevada, I understand that there can be confusion about whether you need a lawyer or a CPA to deal with the IRS. The truth is it depends on the experience level of the certified public accountant. Let me explain the basic process, and when an attorney may be needed.

It all starts with the IRS finding something wrong with your taxes. For example, I have a client who is being audited for 2007. The reason he is being audited is that a revenue agent came across his taxes and noticed that every deduction that he took for 2007 was the exact same dollar amount that he took in 2006. This was a red flag because the revenue agent knew it was impossible that he had spent exactly the same amount on mortgage interests and property taxes.

Once the IRS has flagged you as having a problem with your taxes, there are two main course of action. The IRS will bring it to your attention and they will offer you an assessment. This value will be what they think is the amount you actually owe them. If you decide to pay this amount then you are done. However, if you do not think this is right then the process begins.

At this point, you need to hire a certified public accountant to help you fight the IRS. An experienced CPA in Nevada will understand all of the tax laws and do everything they can to come to an agreement with the IRS. However, if your case moves to tax court you should hire an attorney.

An attorney will have a better understanding on when to push and when to pull back in court. They are more familiar with the court process and are more likely to reach an agreement. With that said, an experienced CPA can take you all the way through the battle. If the court case is focused solely on tax opinions and tax positions, than a certified public accountant should be able to represent you.

If an attorney is needed, it is important to remember that your CPA will be working for you the whole time. Just remember that your CPA will know when and if you need an attorney. When in doubt do not be afraid to ask questions and ask your certified public accountant in Nevada to explain the process to you.

Reno’s Best CPA,

Tim Nelson

CPA In Nevada Versus Attorney, Who Do You Need?encpaswp2016-09-22T22:00:40-07:00

An Accountant In Reno Talks About Coupons

Since one of your New Year’s Resolutions might be about finances, I thought now was an appropriate time to talk about coupons. As an accountant in Reno, I think it is important to manage your finances each year. One of the best ways to save money and allow for more saving is to shop smarter. The easiest trick to shopping smarter is using coupons.

How and Why

Every Sunday the Reno Gazette-Journal is stuffed full of advertisements. Along with these advertisements are those valuable coupons that many people seem to be overlooking. Today’s society is all about speed and therefore, taking the time to look through coupons and change your shopping habits to match the stores with the cheapest products seems too time consuming. However, the time it takes to get the coupons together could save you 20 to 50 percent on your shopping bill.

They Make You Plan

Besides for the obvious financial benefits from using coupons, is the fact that is makes you plan. As an accountant in Reno, I always encourage people to learn to plan. If you can plan, then you will be able to take the necessary actions to get your finances in order. Sometimes you will come across coupons for things that need to be bought in bulk or some that require you to buy two or three of something. If a coupon has a stipulation then you need to plan that into your shopping list.

Don’t Get Caught

Although coupons can save you a lot of money and teach you to plan, you need to be careful. You mistake that some people make, is that they spend too much. Just because you are saving a lot on two items, does not mean you can buy more. If you truly want to save, you still need to exercise self-discipline when you get into the store. Stick to your list, use your coupons and then put the savings into your savings account.

If one of your New Year’s resolutions is to get your finances in order, then it is a good idea to contact an accountant in Reno today. They will be able to help you evaluate your current financial situation and to make plans for 2011.

Reno’s Best CPA,

Tim Nelson

An Accountant In Reno Talks About Couponsencpaswp2016-09-22T21:56:01-07:00

What is the Difference Between A CPA and a Financial Advisor

As a certified public accountant in Reno, I am often asked what the difference is between a CPA and a financial advisor. Because of the frequency of this question, I thought I would take a second to discuss the similarities and differences.

Stockbroker versus Financial Advisor

First, I want to talk about the difference between a stockbroker and a financial advisor because people often think they are one in the same. A stockbroker buys and sells things (stocks, bonds, mutual funds). On the other hand, a financial advisor will do trading, but also look at other ways to invest.

What is a Financial Advisor?

Along with trading, a financial advisor will look at estate planning. They will also have their clients look into gold and foreign currencies. They have a short-term and long-term view on their clients’ money and want to help them prepare for retirement.

How is a CPA different?

A certified public account is better known for handling taxes. Along with taxes, they are known for dealing with audits whether they audit a business or represent a business in an IRS audit. Some CPA’s are trained and qualified in offering business advice on where to cut costs and how to turn your business around. With that said, it is important to remember that this is not a standard among CPAs, you need to make sure you ask your potential CPA about their background before taking too much advice from them.

Can They Be the Same?

The part that confuses people is that a good and experienced CPA can overlap with a financial advisor and vice versa. The best way to remember the difference is to think about the real numbers and current state of things when thinking about a CPA and the long-term “if” and “then” ideas when thinking about a financial advisor. If you are not sure if a CPA in Reno can suit your needs please give Evans Nelson & Company CPAs a call today (775-825-6008) and we will help you find the right person to help you with your financial needs.

Reno’s Best CPA,

Tim Nelson

What is the Difference Between A CPA and a Financial Advisorencpaswp2016-09-22T21:51:28-07:00

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