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With the year coming to an end, it is important to start getting your books in order to have them ready to close, and get a head start on filing your tax return. It is important to know that for the upcoming year, many due dates have changed for 2016 returns, and will be changed going forward.
Here are a few of those dates that have changed for the upcoming filing season. Additional guidance can be found on the American Institute of Certified Public Accountants (AICPA) website:
• Partnerships with a calendar year end will have a new due date of March 15th, and the extension date remains as September 15th. Fiscal year partnership returns are due on the 15th day of the 3rd month after year end, and a six month extension is allowed from that date.
• Trusts and Estates Form 1041 will have the same filing date of April 15th, but the new extension date is now September 30th.
• Exempt organizations will have the same filing date of May 15th, but with a single automatic 6-month extension of November 15th.
• FinCEN Report 114 will have a new due date of April 15th, with a new extension date of October 15th.
• Information returns including W-2 and most 1099 MISC forms will be due to the IRS/SSA on January 31st. This is the same date that they are due to the taxpayer. All other 1099 forms are due February 28th or March 31st if filed electronically.
• C Corporations have different rules for the upcoming years depending on when the year end is:
C Corporations with a calendar year end will have a new due date of April 15th with an extension date of September 15th.
C Corporations with a fiscal year end return other than December 31st and June 30th will be due on the 15th of the 4th month after the year end with an extension on the 15th of the 10th month after year end.
C Corporations with a June 30th fiscal year end will have a due date of September 15th with a new extension due date of April 15th.
It is important to be aware of these new filing dates since this will effect many entity returns in the upcoming filing season.
Reno, Nevada CPAs in the office of Barnard Vogler & Co. can assist individuals in many ways. We offer the traditional CPA services of 1040 preparation and tax planning. 
More specifically, our Reno CPAs have tax experience with California residency issues, cancellation of debts of recourse and nonrecourse, Chapter 11 bankruptcy tax matters and various trusts issues beyond just the preparation of the tax return.
Our CPAs in Reno, Nevada are also versed in a wide array of business matters. Some areas of expertise are the customary services that Certified Public Accountants typically provide such as financial statement preparations, compilations, reviews and audits. Additionally, we have assisted businesses with a congressional tax audit returning to the taxpayer a multimillion dollar tax refund, entity selections to provide the most beneficial business types, or controller/CFO services of remote bookkeeping, budget assistance and development of accounting policies and procedures. 
At our downtown Reno, Nevada location CPAs have also helped unravel and report on multimillion dollar frauds, been Chapter 7 bankruptcy examiners, and performed business valuation and expert witness testimony.
Give our office a call if you need a Reno CPA for yourself or your business.
Modern day business is built on constant competition and an ever changing landscape, where CEO’s must take risks to survive. Risk-taking is something that happens in everyday business and those that have good results from the risks are given bonuses. 
What if the CEO received a bonus from good results in the current year and then 3 years down the road that risk had then flipped and the company tanks? Should the CEO be liable?
Well, according to a recent Wall Street Journal article, that very thing is being proposed on Large Firm Wall Street Bankers. The thought is that their bonuses be deferred over four years and any actions that hurt the firms or a financial statement restatement would have a “claw back” affect over a period of seven years. The CEO’s would have to pay back a portion of their bonuses. There is already a form of “claw back” that is in place, but it is less stringent and only goes back about three years. 
Regulators are presuming that issues arising from the CEO’s decisions usually take more than three years to show up; thus the reason why they are proposing pushing the time limit to seven years. The purpose of the proposition is to combat and prevent another recession by holding CEO’s more accountable.
The issue that has been raised is if this passes, would the CEO’s adjust their pay structure? Would they opt for more stock and salary instead of bonus structure?
Just over a month away is the election for the 45th President of the United States. No matter which side of the aisle you find yourself on, there is no doubt that each candidate has proposed some substantial tax legislation changes. Here is a comparison of the candidates tax plans:
• “Fair Share Surcharge” – A proposed 4% increase to the top tax rate of 39.6% for individuals making over $5,000,000 per year. All other tax rates for individuals would remain constant.
• Closing loopholes – Strengthening the Buffet Rule and broadening the base of income subject to the rule, closing Bermuda reinsurance loophole and the “Romney Loophole”, and closing the “step up in basis” loophole.
• Closing the “Carried Interest” Loophole – Loophole which allows hedge fund managers to avoid ordinary income tax rates for earnings.
• Restore Estate Tax to 2009 Parameters($3,500,000 Estate exemption, 45% tax rate) with rates increasing to as much as 65% on estates over 1 billion.
• Ensure millionaires pay a minimum tax rate of 30%.
• Impose a “risk fee” on the largest financial institutions.
• Corporate tax rate will remain at 35%.
• Reduce tax rates for individuals from 12% for Married Filing Jointly (MFJ) filers under $75,000, to a maximum of 33% for MFJ filers over $225,000. Single filers would be half of these numbers.
• Retain current capital gains rates(max of 20%).
• Repeal net investment income tax of 3.8%.
• Increase standard deduction to $30,000 for MFJ, and get rid of personal exemptions.
• Cap itemized deductions at $200,000.
• Repeal Estate Tax unless capital gain assets valued over $10,000,000 were held until death, disallow private established charity donations.
• Above-the-line deduction for childcare for children under 13, capped by states per child. Not available to MFJ taxpayers over $500,000.
• Spending rebates for childcare expense to certain low-income taxpayers through the Earned Income Tax Credit (EITC).
• Cut corporate tax rate from 35% to 15%, and provide 1 time repatriation of offshore funds for a 10% tax rate.
Each tax plan is diametrically opposed from the other, but both will change the tax planning efforts that accountants will need to have to properly advise clients in the coming years. To view the tax plans in full detail, click on each candidates name to connect to their websites.
The Harvard Business Review recently published an article outlining an interesting strategy which should make negotiations more civil, speedy and fair.
The authors have proposed an approach they call the “final-offer arbitration challenge” for reaching fair agreements efficiently.
It works like this. If the other side’s position is unreasonable, one’s initial reaction is often to be just as unreasonable, believing that the issue will be resolved somewhere in the middle, and thus be reasonable. This may ultimately be the result but often only after investing a lot of time and money to get there. It stands to reason that if the parties come to a negotiation with realistic starting positions, the negotiations that follow should be relatively civil, speedy and fair.
But how can a negotiator who wants to be fair at the outset be sure that his or her counterpart will do the same? This is where the “final-offer arbitration challenge” can help to reach fair agreements efficiently. It works like this: To encourage reasonableness, one side should make their offer demonstrably fair from the outset. Then, if the other side is unreasonable, they should be challenged to take the offers to an arbitrator who must not compromise, but must choose one or the other offer. This approach should result in offers that are more aligned from the beginning. 
Thus it is to everyone’s benefit if the parties come to the negotiations with reasonable offers in hand.
This is not unlike the way thoughtful parents have resolved disputes between two siblings. Have one cut the last piece of cake in half, and have the other choose first.
Selling your home sale could impact your income taxes. You may or may not have to pay income taxes on the gain from the sale of your home.
The gain from the sale of your home may be excluded, either all or in part, from your income tax if you meet the eligibility test. The eligibility test consists of ownership and the use of the home rules. 
You must have owned and used it as your main home for at least two out of the five years before the date of the sale. Property acquired through a like-kind exchange (1031 exchange) during the 5-year period is not eligible for the exclusion.
The 24 months used as your main home can fall anywhere within the 5-year period and does not need to be consecutive 24 months. Short absences count as time lived at home. Only 12 months of residence will meet the requirement if you are physically or mentally unable to care for yourself. Time spent living in a licensed care facility also counts toward the residency requirement.
Partial exclusion is available if you moved because of work, health or an unforeseeable event. Work-related exception qualifies if your new job is at least 50 miles farther from home than your old work location. Health-related exception qualifies if you moved to obtain, provide, or facilitate diagnosis, cure, mitigation or treatment of disease, illness, or injury for yourself or a family member. Health-related exceptions also include a doctor’s recommendation of a change in residence due to health problems. Giving birth to two or more children from the same pregnancy is one of the situations qualifying as an unforeseeable related exception.
The maximum gain exclusion is $250,000 or ($500,000 if married filing jointly). The eligibility test must be met to qualify for the full or partial exclusion. Check for additional rules and any exceptions that may apply to you. One last note: You must report the sale to claim the exclusion and if you receive a form 1099-S, Proceeds from Real Estate Transactions, even if you have no gain from the sale.
As we approach the last month of summer, many of us are still trying to gather documents to finalize the 2015 tax returns due in the next few months. But these are the prime months to begin the planning procedures to reduce your taxes in 2016. 
With the passing of the PATH Act of 2015 last year, the looming issues of expiring tax deductions have been delayed, or extended permanently. For the first time in several years, we know before December what our tax break limitations will be. Here are a few planning options to look into:
This is the best time of year to review your P & L from the first half of the year to project your net income at year’s end. If you have excess income and are looking to reduce the tax burden, it may be the perfect opportunity to purchase new vehicles or equipment and utilize Section 179 or Bonus Depreciation.
Have you had any life changes, such as getting married, having children, etc.? Or has your business produced more income than you expected when your estimates were prepared? You should review your withholding now to make sure you are not surprised with a substantial bill at tax time, or alternatively, that the IRS is not holding excess funds for the rest of the year that you could be utilizing.
Are you on track to max out your 401K contributions?You may have an opportunity mid-year to adjust your contributions to make sure you are maximizing your limits. Retirement contributions are a fantastic way to reduce your AGI if you are being hit with Net Investment Income Tax, high tax rates, or limited deductions.
If income is projected to be lower than expected this year, it may be the ideal time to convert your Traditional IRA to a Roth. If you anticipate that this will be the lowest tax bracket that you may be in for the foreseeable future, converting a Traditional to a Roth IRA and taking advantage of the lower tax rates may be ideal. You will have to pay taxes on the converted value of the IRA, but your converted funds will be able to grow and be withdrawn tax free in the future.
Stay Organized.The best tax advantage for your small business may just be getting every deduction that you deserve. Being organized and maintaining good records throughout the year will help ensure that all of your expenses get properly recorded. This includes maintaining mileage logs, which are much tougher to recreate months later.
If your accountant is informed about your financial plans before the transaction is made, strategies to mitigate taxes can be discussed. After the transaction is completed, it cannot always be readily reversed and can lead to huge tax implications if done incorrectly.
So enjoy the remaining warm days of summer, but get into the habit of planning for taxes now, and you can reap the benefits of your hard work for years to come.
When is it time to retire? Is it some set age such as when social security or medicare benefits are available? It’s different for everyone. And people are continuing to work later in life. Why? 
Maybe because they need to (haven’t saved enough – the recession hit them hard) or maybe because they want to (enjoy what they are doing).
The toughest decision to make for many is “when do I have enough?” “When can I stop accumulating and be okay with spending?” It’s a difficult mindset to get around. During our careers we are constantly accumulating. It’s tough for some to flip that switch and say “ok, I’ll be okay. I’ll be able to continue living in the lifestyle I want.”
Lisa Du, in her article “Golden Years Redefined as Older Americans Buck Trend and Work“, provides some real life examples of why people are continuing to work:
There are other reasons for continuing to work other than just financial. Some want to keep their mental skills sharp and working is an opportunity to do this. They want to feel they are contributing and have a purpose. This is especially true for owners when they sell their business. They have worked long and hard and kicking back in the rocking chair doesn’t appeal to them.
I recommend that you think through what you want to do during your “retirement” years. Determine what you need to accomplish that. Evaluate what you have. Develop a timeline that fits. Be flexible. You may move it. This is your life plan. Make it happen.
There are many financial planning tools and advisors that can assist you. Utilize them. We have assisted clients with determining if it is “ok” to flip that switch. Feel free to give us a call.
According to the Network for Good, 30% of all online charitable contributions in 2015 were made during the month of December. 
This is not surprising as the gift-giving spirit around the holidays inspires many people to donate to causes near to their hearts at that time. Fortunately for us taxpayers, a donation to an IRS qualified charity can provide a tax deduction regardless of when it was made throughout the year. Summers, in particular, are a great time of year to think about donating. First, you can give cash without the stress of holiday spending. Second, you can donate non-cash items and declutter your home at the same time. Here are some tax tips on deducting charitable donations posted by the IRS on its website:
1. Make sure to donate a qualified charity. You cannot deduct donations to individuals or political organizations or candidates. Use the IRS Select Check tool to check the status of the charity to which you would like to give.
2. Be aware that your deduction may be limited. If you receive something in return for your donation, you can only deduct the amount in excess of the value of what you received in return. For example, if you donate $50 to a qualified charity and receive a ticket to a fundraising dinner valued at $30, you may only deduct $20. 
In addition to this rule, there are AGI limits on charitable donation deductions. Generally, donations may only be deducted up to 50% of AGI. See Publication 526, Charitable Contributions for more information.
3. If you donate non-cash items, there are several things to keep in mind. For donated property to be deductible, it must generally be in good condition. Also, the amount of the deduction for donated property is generally its fair market value. There are special rules for cars, boats, and other types of property. See Publication 526, Charitable Contributions, for more information on these rules. See also Publication 561, Determining the Value of Donated Property.
4. Be diligent with recordkeeping. There are very specific substantiation rules regarding charitable donations. The amount and type of your donation will determine what kind of record you must keep. In general, you must have a written record of any cash you give to claim a deduction. 
For donations of $250 (cash or property) or more, you must have a written statement from the charity stating the amount and/or a description of the property you gave and whether or not you received anything in return.
The IRS has a section on its website dedicated to information relating to charitable contribution deductions. More guidance can also be found in Publications 526 and 561.
On the ballot in November will be a tax rate adjustment that’s worth taking a look at: Sales Tax. The proposed sales tax hike would increase Washoe County sales tax from 7.725% to 8.265%, which would make Washoe County the highest tax rate in Nevada. The current high is in Clark County at 8.15%. To put this into perspective – if you bought an iPhone and it cost $400 pre-tax, the cost would go from $430.90 to $433.06 after tax under the new sales tax rate. 
The committee overseeing the proposal had several different options to choose from including sales tax, property tax, car registration, hotel room tax, and real-estate transfers before settling on sales tax for the final proposal.
The money received from the tax increase is to go to Washoe County schools, which currently are overcrowded and underfunded. However, the sales tax increase would be effective indefinitely. The intent is to allow the school district to use $781 million in bonds to fund school projects over the next 20 years to be used along with the $315 million in rollover bonds granted from state lawmakers stemming from the 2002 ballot election for Washoe County Schools that expired in 2012. 
According to the Reno Gazette Journal, the proposed fixes to the schools are: additions to Damonte Ranch High School, existing school repairs, three new middle schools, three new high schools, repurpose Hug High School, nine new elementary schools, expand Sparks High School, invest in older schools, expand nutrition services, and expand the transportation yard.
Currently, Nevada ranks lasts in education ranking in the nation; according to a report in the Reno Gazette Journal. Nevada also ranks 48th for school funding, only paying about $8,200 per student, when the national average is $11,700 per student.
