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According to an article on CNBC this week, this year millennials will surpass baby boomers and GenXers to become the largest generation in the American workforce. Adults age 18 to 34 now make up 1 in 3 American workers. There have been numerous articles, seminars and training sessions built around how to effectively lead and work with different generations in the work force. At every conference I’ve gone to in the past 3 to 5 years, there has been at least one session on the issue and at each of those sessions, there is always at least one person in the room that seems frustrated with their millennial generation employees and trying to “figure them out”.
So what are the current issues important to millennials? 
According to the Hartford’s 2014 Millennial Leadership Survey, millennials noted that work-life balance (or more importantly work-life integration) stood as one of the top issues of importance. Millennials also want to know that their work is a place of growth and development, and they are accustomed to open communication and accessibility.
As a millennial myself, I happen to agree with the above survey results, and I have witnessed the impact of my generation within the company I work for. When career and advancement paths were not clearly defined or established within my firm, I personally asked for that clarification so I could understand my opportunities for advancement and how I could go about getting there. Now, career paths are defined and documented for everyone to see. 
What was once mandatory Saturdays during tax season turned into a flexible work schedule where the staff could work which days and hours they pleased as long as the hours were met.
Not every millennial meets the stereotype of a millennial, and the best way to find out what is important to your employees of any generation is to simply ask. I have found that my generation is usually more than willing to be honest and open with what priorities are important to us.
The Supreme Court, in a 5-4 decision delivered by Justice Kennedy, has held, in a case involving four state-wide bans on same-sex marriage, that the Fourteenth Amendment requires a State to license a marriage between two people of the same sex. And, since same-sex couples may now exercise the fundamental right to marry in all States, there is no lawful basis for a State to refuse to recognize a lawful same-sex marriage performed in another State. 
Although the decision made only passing reference to tax implications, the wide-reaching social, political, and economic ramifications inherent in this decision include a number of significant tax issues.
Some brief background – If you will recall, in 2013, in a 5-4 opinion, the Supreme Court, in Windsor, struck down section 3 of DOMA as an unconstitutional deprivation of equal protection.
Following Windsor, the IRS issued a Revenue Ruling which provided that a same-sex couple that was legally married in a domestic or foreign jurisdiction that recognized their marriage would be treated as married for federal tax purposes, regardless of where they currently live. Further, it provided that lawfully married same-sex couples must file as married couples for federal income tax purposes.
In response, many States issued guidance after the IRS ruling that required same-sex couples married in other states to file separate state income tax returns, even if their filing status was married filing jointly for federal income tax purposes.
Implications of the Court’s recent ruling – In addition to the many and varied social, political, economic, etc. ramifications of the Court’s decision, there are also several tax implications. Just a few are noted below.
Same-sex married couples will now enjoy a simplified tax filing environment. Since the Windsor decision and the Revenue Ruling which followed, same-sex married couples must generally file their federal tax returns as married (starting with the 2013 tax year, as well as for earlier years where the original return is filed on or after Sept. 16, 2013). However, for married same-sex couples who live in a State that didn’t recognize same-sex marriage, they had to file their State returns as unmarried taxpayers. 
This conflict caused couples in these States to incur added time, effort, and expense. Many State tax returns used the federal return as a starting point of sorts, and some States that didn’t recognize same-sex marriage required taxpayers to prepare a “dummy” federal return for purposes of completing their State return.
In this regard, the Court’s recent decision essentially makes Windsor applicable not only for federal tax returns but for State returns as well. Thus, those in a same-sex marriage will be considered married for State and federal return purposes, eliminating the need for “dummy” forms.
The reverse problem may arise for same-sex couples who aren’t married, but are in a State-sanctioned domestic partnership or civil union or similar arrangement—they can’t file a joint federal return, but may be able to file a joint State return.
Same-sex couples who reside in States that didn’t previously allow same-sex marriages can now marry. Same-sex couples who were married in States that allowed such but moved to States that didn’t recognize same-sex marriages are now married for State purposes. Some significant provisions common to all states include, among other things:
In addition, in States that impose estate and gift taxes (or inheritance taxes), many have favorable provisions for transfers to or involving a spouse similar to the federal rules, such as a marital deduction or the ability to make split gifts.
A unique problem may arise for same-sex couples who are in a State-sanctioned domestic partnership or civil union or similar arrangement. Presumably, with all States now required to provide same-sex marriages, there is likelihood that in many (if not all) cases, these marriage “substitutes” may eventually fade away. If that’s the case, such same-sex individuals may have to choose if they want to be married for federal tax purposes—a consideration that needs to take into account many factors.
© Checkpoint Newsstand – June 29, 2015
As most of you are probably aware, the Nevada Legislature approved and Governor Sandoval signed the new commerce tax into law effective July 1, 2015. If a “business entity” is engaged in business in Nevada with Nevada-sourced gross revenue over $4,000,000, the excess of that revenue over $4,000,000 is subject to the tax at various rates (.051 percent to .331 percent respectively). 
Though the estimate of businesses that will be impacted by this tax are somewhere around 10%, all businesses will be required to determine their Nevada-sourced revenue and fill out the form regardless.
More guidance will be coming from the Nevada Department of Taxation, and there are numerous exclusions from gross revenue as well as allowable deductions, but there are a few key takeaways that Nevada taxpayers should be thinking about now:
The form is due 45 days from the end of the tax year, essentially August 14, 2016, though a 30 day extension can be requested. This is not a long turn around time so that is why planning for this new law needs to be happening now.
The new law also increased the Modified Business Tax from 1.17%to 1.475% for most businesses effective July 1, 2015, as well as reduced the exemption from $85,000 per quarter to $50,000. Make sure your payroll department or outsourced payroll company is aware of these changes.
Business license fees increased to a flat $500 for corporations as well as the law increased the initial and annual list for corporations with authorized stock by $25 for all fees.
If you have questions regarding the new law or need assistance, please contact us.
Earlier this year I wrote a blog analyzing how one should go about purchasing a winter season pass at one of the many Lake Tahoe ski resorts, but I overlooked what that winter pass gets you during the summer months at the various ski resorts. In my previous post I declared that I buy my season pass at Sierra-at-Tahoe for $279 which is the best price in Tahoe, however that $279 gets you nothing during the summer months and so I reconsidered my decision for the 2015-2016 winter season. 
The same can be said about the epic pass and the ability to use the summer biking activities at Northstar ski resort, as you cannot use your winter pass to ride the gondola or take laps on your mountain bike. Northstar offers a summer bike pass that will run $349 if you have a winter pass which only pays for itself if you are going to ride 7 or more days at Northstar, and if you do not have a winter pass you will need to ride 8 or more days for the pass to pay for itself. The bike park is not all Northstar has to offer; Northstar also offers golf, mini golf, a bungee trampoline, a rock wall, fly fishing on a stocked reservoir, and also features live music during the summer. These other activities have their own pricing and do not require you to buy a lift ticket to enjoy.
The epic pass does not include just Northstar, but Heavenly ski resort and Kirkwood ski resort as well. At both of these resorts your winter epic pass gets you free access to the lifts during the summer with tons of hiking trails to be explored. Heavenly has one activity that no other resort has in Lake Tahoe and that is zip lining. Heavenly currently boasts two zip lines, one of which is 3,300 feet long and over looks gorgeous Lake Tahoe on your way down. Kirkwood also offers mountain biking during the summer in addition to hiking and is included in the price of the Northstar bike pass, or you may purchase a Kirkwood only biking pass for significantly cheaper. Other activities that these two resorts host are disc golf, summer tubing, a ropes course, and outdoor climbing all accessible with your winter season pass. 
This year I personally purchased the epic pass for the winter as I will be visiting the largest ski resort in the United States, Park City / Canyons, and I am stoked on the addition of Jackson Hole Wyoming to the Vail Resorts family.
Squaw Valley has some of the best hiking trails that I have been on in the North Lake Tahoe area. The tram costs $39 for adults to ride up and is free if you have a valid winter season pass; however if you hike from the base to the top of the tram you are allowed to ride the tram down to the bottom for free. Along the hiking trails there are many waterfalls and swimming pools early in the summer, and also a disc golf course that runs all summer long beginning June 20th of this year. Disc golf is free however you will need to ride the tram up to the course or take the free hiking trails up to the course. Squaw also offers tennis, golf, a ropes course, roller skating, a pool and spa, and plays host to many summer festivals such as Wanderlust. Purchasing a winter pass does get you free tram rides at Squaw Valley during the summer and so this pass is useful all year long, however this pass does cost the most out of all the passes in the Lake Tahoe area. Now get your pass and get out there and explore Lake Tahoe.
As I get ready to head off on vacation, I ran across a couple of articles on CFOs taking more working vacations. Robert Half Management Resources performed a study as to how often CFOs check in with the office during summer vacation. The percentage of time is increasing from their responses in 2012. It’s so easy now with everyone being so plugged in. Only 32% don’t anticipate checking in at all.
Robert Half Management Resources offers suggestions for allowing yourself to get away:
I’m a bit of an “all in or all out” person. When I’m in town I’m tied to my work. Some call me a workaholic. However, when I’m gone, I’m usually “gone.” Why? Because I do trust my team to take care of things. Our firm involves other staff in client relationships so that they can handle matters when the key contact person is out. I don’t worry when I’m gone.
We promote work-life balance because it’s meaningful to the Millennials, but we all need an opportunity to take some time to recharge. Sure, we may pay for it by putting in extra time before we leave and then on our return. 
But I do believe it is important to recharge. Your perspective is much better when you’ve had a chance to clear your mind and enjoy some personal relationship time.
I’m heading off to spend some quality travel time with my future daughter-in-law. One to one time. How often will that opportunity happen?
So, even as I feel guilty about taking off, it won’t last long. Until I return.
The Reno Tahoe Odyssey, or “RTO” as it has become to be known around the area, is a relay race that begins in the heart of downtown Reno, traverses the hills up through Verdi and Truckee, to the West Shore of Tahoe, back down through Genoa and Carson City, continues up to Virginia City and culminates back in Reno at Idlewild Park. 
It consists mainly of 12 person teams, but can be as small as 1 (in 2014, “Army of Juan” completed the course for the first time solo!) in an attempt to travel the 178 miles in less than 33 hours. Most teams consist of 12 individuals who each run 3 legs of the relay race. Each team member runs approximately 15 miles during the day and half of sheer agony, beginning Friday morning at 7 am and concluding no later than 4pm on Saturday afternoon.
The Before
This year will be my first attempt at this adventure. I am writing this portion of my blog prior to running as I begin my legs in about 3 ½ hours. I am excited and nervous at the same time. I have been training for about 3 weeks as I was a late addition to my team. I feel completely under-prepared as I am the unfortunate one to draw the hardest ranked set of legs – 7, 19, and 31. I’m still not really sure what to expect. I am having a hard time grasping the team aspect of the race, and am mainly worried about how fast my individual splits will be. I wonder how my Outlook will change over the next two days…
The After
What an amazing, terrible, agonizing, wonderful event. Sleep deprivation, burning legs, and the inability to breathe makes you question your sanity…until you see your team standing at the next exchange point. As soon as you make the handoff you beam with confidence and accomplishment at the task that you have completed. Even though I could barely stand, it was one of the greatest events of my life.
My personal goals are immediately set aside as I found myself running purely for the rest of my team. While running, or even those walking, constant applause and encouragement came from every angle as other runners, support vans, and patrons alike cheer you on as you make your way through this daunting event. I can surely say that it has changed my life. 
The camaraderie of the race restored my faith in humanity as 3,000 runners came together to accomplish a common goal. I can’t imagine not being a part of this event for the rest of my life.
A huge thank you to the hundreds of volunteers who help put this event on. Only 51 weeks left until next year…time to start training!
Drones have been in the headlines here in Northern Nevada as we compete to be a player in their research and manufacture. Sensational headlines are appearing on how drones will revolutionize the delivery of packages. But for all the excitement, I for one am lamenting the day these become more ubiquitous.
The home is supposed to be the one place in a person’s life for solitude. 
Well that and getting to the outdoors. I can already envision a future where people’s drones are intruding on my private time at home while flying overhead or when I’m out hiking in the mountains and get to hear the whine of a drone overhead from somebody wanting a picture.
The only practical personal application I can see is that of taking pictures. But aren’t we taking enough pictures already now that everyone has a camera phone in their pocket? I do see some worthwhile business applications for drones. I see their usefulness in assessing damage after natural disasters, with military applications or helping farmers monitor their crops. However, I can never see a day where drones are economical in delivering the millions of packages that are delivered each day. And if they do find an economical way I don’t look forward to that day when hundreds are buzzing in the sky each day for me to dodge while delivering packages to their various destinations. 
Today it is hard enough just walking down the street dodging people immersed in their cell phone.
So while we develop drones and more people use them I think there are going to be more knuckleheaded people landing their drones on the White House lawn or taking pictures of some strangers lounging in their backyard or buzzing overhead while I’m checking out Yosemite. But if this is the future then at least Nevada should be at the forefront.
There are so many wonderful non-profit organizations in the Northern Nevada area, one of which is The Give Hope Foundation. I was recently asked to be a board member for this organization, and could not pass up the opportunity to be a part of an organization with such an important cause. 
Give Hope provides financial assistance to Northern Nevada families with children battling a chronic illness.
Financial assistance for these families could include non-covered medical expenses, but could also be any number of expenses necessary to support the family and the child. These expenses could include rent or utility payments, travel expenses for out of state treatment, food, or any other expenses the family may need help paying. One of the things that sets this foundation apart is it does not target a specific illness, thus allowing the foundation to provide financial assistance to families that need help regardless of the child’s diagnosis or illness.
This foundation has helped over 325 families and has distributed over $650,000 since its inception. The majority of the funds stay in our local community to help northern Nevada families and a small percentage is allocated to St. Jude’s Children’s Research Hospital and Children’s Hospital Oakland.
Give Hope has been helping children in our community since 2001, and received its 501(c)(3) charitable exemption status in 2005. Each year Give Hope hosts two annual fundraising events including a golf tournament and an auction gala to help raise money to support their cause. Upcoming is the golf tournament on July 10th at the LakeRidge golf course. There will also be an Aces game on Wednesday, July 29th at 7:05 p.m. where a portion of the tickets bought through the Give Hope website will directly benefit the Give Hope Foundation. There are many opportunities to support this organization through the events and all year long through donations. More information about these events and the organization can be found at their website.
“Hey big spender! Bruce Willis treats waitress to a whopping 800 euro (roughly $900) tip after dining on filet mignon, lobster and gnocchi during Berlin getaway with Emma.”
That was the headline published on Mail on Line May 12, 2015. The total bill was not disclosed.
Typing “tipping guides” in Google search will result in no less than 35 pages of various websites on the topic of tips and tipping etiquette. Wikipedia defines “gratuity (also called a tip) as a sum of money customarily tendered, in addition to the basic price, to certain service sector workers for a service performed or anticipated.”
Tipping and the amount of a tip varies by location and circumstances. Traditionally, tipping is not part of the culture in China and Japan. In fact the people of these two countries see tipping as insulting.
The United States and Canada share similar tipping practices. A typical trip could result in a substantial amount of tips, starting with the bellman, possibly the concierge, a taxi driver, the maître d’ at a restaurant, the waiter, the restroom attendant and the hotel housekeeper when you leave. It all adds up.
Servers work in the United States with the expectation of receiving tips. Tips are considered income and are treated as earned wages except in the months when tip income is under $20. At least 40% of tips received by waiters are not reported, according to the Internal Revenue Service.
The IRS case on the Fior D’Italia in San Francisco computed the under-reporting of tip income by the employees of $156,545 in 1991 and $147,529 in 1992. The average tips ranged from 14.4% to 14.29%.
Under-reporting of tip income is a big tax nightmare. The employer share of FICA and Medicare taxes on under-reported tip income by the employees is owed by the employer. The employees may also be subject to audit for underreporting of income after discovery of under-reported tips at an establishment.
Tipping is customary, not mandatory. How much and if you tip is totally discretionary. It all depends on your personal view on tipping. Are you tipping because you received good service, out of guilt or just feel obligated?
On the flip side, if you receive tips, you’re supposed to report them as income for tax purposes. Tips are supposed to supplement your wages. For more information on reporting tip income go to the IRS website.
As my mind is busy with other things in life, I thought I’d buzz through some of the week’s events I have found interesting. 
And as much as the royal baby is cute, I won’t spend any more time on that subject.
This week saw the American celebration of Cinco de Mayo (and yes, we are primarily the only ones celebrating). I personally didn’t get out and do anything this year, but I did read the obligatory articles explaining the real history of May 5, 1862. Kelly Phillips Erb (the “taxgirl”) over at Forbes had an interesting piece explaining the Battle of Puebla was really just a small victory for Mexico in the Franco-Mexican War. 
Like most wars, the Franco-Mexican War was about power, money and taxes. The government in Mexico at the time decided to default on European debt. Not surprisingly Britain, Spain and France sent armed “debt collectors” over to gather their money owed. Britain and Spain cut deals with Mexico and went on their way while France decided to stick around and exert its power. War broke out and on May 5, 1862, Mexico won a small, symbolic battle at Puebla de Los Angeles. France would eventually take Mexico City and occupy it for three years, but that small victory in Puebla has given American and Mexican beer companies a perfect excuse to sell more beer.
Moving on to Wednesday of this week (May 6, 2015), the long-awaited “Deflategate” report was released by Ted Wells, the NFL appointed attorney who investigated the allegations. The conclusion? It is more probable than not that two New England Patriot employees deliberately deflated game balls and that Tom Brady more likely than not knew about it. To this whole thing I say, “meh.” I find it irritating and stupid. The evidence seems to point to the footballs being intentionally deflated, but I don’t believe anyone will ever own up to it. 
Any member of the Patriots staff that participated in this (player, locker room personnel or otherwise) is an idiot, but the fact that the NFL didn’t more closely control game balls has always blown my mind about this story. So, we’ll soon find out what the NFL will do and this story will be added to the annals of cheating in sports.
Lastly, and more locally, the nonstop Reno-London flights that were set to start in December have been canceled. I probably wasn’t going to hoping on that flight any time soon, but I liked the idea of international travel coming into Reno. A Thomas Cook Airline spokesperson said that processing time at customs was unacceptable. Bummer. Maybe the processing time will get better in the future and we’ll see this flight finally land in Reno.
