nevada tax preparation

How Much Does A Reno CPA Charge For Tax Preparation?

One of the first things people want to know about Reno CPAs is how much does their service cost. Unlike other professional services, there is no set amount. It varies on how organized and prepared you are, the complexity of the return, and the overall time it is going to take to prepare your taxes. It is important to remember that you are hiring an expert who can save you a lot of time, questions, frustration and money. This should be factored into your decision to hire a Reno accountant or CPA, because your savings will likely be larger than the initial cost.

How Much Does A Reno CPA Charge For Tax Preparation?encpaswp2022-11-29T14:18:00-07:00

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

Nevada Corporate Tax Planning is Not an Option, It is a Must

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It is time to talk about the importance of tax planning in small business. Nevada corporate tax planning is necessary for any business to be able to meet their obligations to the government, increase their profits and to plan by analyzing previous years’ performance. An experienced Nevada tax accountant can guide a company through the maze of tax laws, advise about debt-reduction strategies and help put more money into growth and development.

Taxes are Unavoidable

It is impossible to avoid paying taxes in business. Any time a product or service is made or sold, the business has to pay taxes on a portion of its profits. Taxes allow the government to give services and protection to its citizens. However, a company can lower its taxes and increase its working capital with tax planning. A business can grow and become more profitable with more working capital. The company’s accountant should discuss what kinds of tax deductions and write-offs are right for the business at the proper times.

Two Basic Corporate Tax Planning Rules

There are two key rules in tax planning for Nevada small businesses. The first is that the company should not take on extra expenses to get a tax deduction. One smart tax planning method is to wait until the end of the year to buy major equipment, but a business should only use this strategy if the equipment is necessary. The second rule is that taxes should be deferred as much as possible. Deferring taxes means legally putting them off until the next tax season. This frees up the money that would have been used to pay that year’s taxes for interest-free use.

Accounting Methods

A company’s accounting methods can influence its taxes and cash flow. There are two main accounting methods, the cash and the accrual methods. In the cash method, income is recorded when it is actually received. This means it is noted when an invoice is actually paid rather than when it is sent out. The cash method can defer taxes by delaying billing. The accrual method is more complex because it recognizes income and debt when it actually occurs rather than when payment is made or received. It is a better way of charting a company’s long-term performance.

Nevada Tax Planning with Inventory Control and Valuation

Properly controlling inventory costs can positively affect a company’s tax deductions. A tax planning accountant can advise how and when to buy inventory to make the most of deductions and changes in stock value (valuation). There are two main inventory valuation methods: first-in, first-out (FIFO) and last-in, first-out (LIFO). FIFO is better in times of deflation and in industries where a product’s value can drop steeply, such as in high-tech areas. LIFO is better in times of rising costs, because it gives inventory in stock a lower value than the prices of goods already sold.

Predicting the Future by Looking at the Past

Good tax planning means that a company takes the past sales performance of their products and/or services into account. In addition, the state of the overall economy, cash flow, overhead costs and any corporate changes need to be considered. By looking at previous years according to the “big picture,” executives can forecast for the future. Knowing an expansion or a cutback will be needed makes planning for it easier. The company can stagger expenses, purchases, staff reductions, research and development and advertising as needed.

A Nevada tax-planning accountant can help a company increase profits, lower taxes and achieve growth for the future. Discuss your business’s needs, wants, strengths, weaknesses and goals with your corporate accountant to develop a tax planning strategy for all of these factors.

Reno’s Best CPA,

Tim Nelson

Nevada Corporate Tax Planning is Not an Option, It is a Mustencpaswp2016-09-22T18:32:45-07:00

IRS Wants Money, a Reno CPA Can Help

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Whether it’s back taxes, money owed following an audit, or taxes due from the current year, owing money to the IRS can have devastating repercussions if left unpaid. The IRS has the right to place levies and liens against your property to insure tax repayment. This could lead to seizure of your home, automobile, or bank account with serious effects on your credit. When the IRS wants money, there are several options available. There are many ways a Reno CPA can help.

Notice of Tax Due

When an individual doesn’t pay the total tax amount due to the IRS by the annual filing date, they will receive a “Notice of Tax Due” letter. Within a few months, the debt will be in collections status and penalty fees will continue to add up. It is important to act quickly when you owe taxes to the IRS. A person who doesn’t agree with the amount stated has the right to ask for an assessment by an IRS manager. Copies of bank statements, receipts, and other finance related records will be needed for the hearing. Many taxpayers choose to hire a CPA to represent them at this point.

Finding a Qualified CPA

Retaining the services of a Certified Public Accountant can be very beneficial when you owe tax money to the IRS. Not all CPAs are qualified to represent taxpayers during the IRS collection process so it’s important to choose the right one. Beware of tax debt relief scams that may end up costing you even more money in the long run. Look for a CPA that specializes in working with the IRS on the taxpayer’s behalf. Read client reviews and look into their previous case history if possible before deciding to hire a professional. The right Reno CPA can offer sound advice and get the best IRS payment deal possible.

What to Expect from a Reno CPA

The first thing a CPA will do is discuss the available options. An “offer in compromise” is usually the best strategy. This allows the taxpayer to make a settlement with the IRS and pay less than the total tax amount. The CPA will help you decide on the best plan of action and will make sure it is executed correctly. He or she may file necessary paperwork with the IRS and will represent you in meetings with IRS agents. The CPA will also assist with appeals, hearings, or audits that may be required to help lower the tax amount you must pay.

The IRS can be brutal when it comes to collecting taxes that are owed. Doing nothing when you owe money to the IRS can lead to wage garnishments, frozen bank accounts, and the loss of your home. There are several options available to pay back the tax money owed to the IRS. A qualified Reno CPA can help you make the best decision and can even reduce the amount you owe. Hiring a Reno CPA also brings peace of mind. It’s easier to be confident when there’s a knowledgeable, experienced professional working for you.

IRS Wants Money, a Reno CPA Can Helpencpaswp2016-09-22T16:53:01-07:00