FAQ

WORKING WITH ME
Do you take new clients?

Yes — I'm accepting new clients. As a solo practitioner, I keep my client list small enough to give every return personal attention, so capacity is tightest during filing season (February through April). If you contact me after April 1st, I may schedule your work for an extension. 

What do your services cost?

Fees depend on the complexity of the work. Individual returns typically start at $300; returns with rental properties, businesses, or multiple states generally run $500-$900; and S-corporation, partnership, and trust returns are quoted individually after I review your prior-year filings. I always provide a fee estimate before work begins — no surprises. Typical prices are $900-$2,000.

Can we work together remotely, or do I need to come to your office?

Either works. Many clients meet with me at my Carnelian Bay office, but I also work with clients throughout California and Nevada entirely by phone, email, and a secure online portal for exchanging documents. Several long-time clients have never set foot in the office.

What should I bring to a first meeting?

Bring your last two years of tax returns, your current-year documents (W-2s, 1099s, K-1s, mortgage statements), and a note about any major changes — a move, a home sale, a new business, a marriage or divorce. If you own a business, bring your entity documents and a current profit-and-loss statement. Copies or digital files are fine. Digital files can be uploaded to my secure portal before meeting.

What areas do you serve?

My office is in Carnelian Bay, and most of my clients are in Tahoe City, Kings Beach, Homewood and the West Shore, Truckee, and Incline Village. I also work remotely with clients throughout California and Nevada.

SMALL BUSINESS & S-CORPORATIONS
Should my business be an S-corporation?

An S-corporation can reduce self-employment tax by splitting your income between a reasonable salary and profit distributions, but it isn't right for everyone. It generally starts to make sense once profits are comfortably above what you'd have to pay yourself as a fair salary — enough to justify payroll costs, a separate tax return, and stricter recordkeeping. The right answer depends on your profit level, other income, and retirement goals, and that analysis is exactly what I prepare for clients considering the election.

What is “reasonable compensation” and why does it matter?

If you own an S-corporation and work in the business, the IRS requires you to pay yourself a salary comparable to what you would pay someone else to do your job before taking profit distributions. Setting the salary too low is one of the most common audit issues for S-corporations. I help clients set and document a defensible salary using compensation data, your role, and your hours in the business.

I formed an LLC — how is it taxed?

An LLC is a legal structure, not a tax classification. A single-member LLC is taxed as a sole proprietorship by default, and a multi-member LLC as a partnership; either can elect S-corporation treatment when the numbers support it. California LLCs also owe the $800 annual franchise tax and, above certain revenue levels, an additional gross-receipts fee — real costs that belong in the entity decision.

Do I need to make quarterly estimated tax payments?

Generally yes, if you expect to owe more than $1,000 federally (or $500 to California) beyond your withholding — common for business owners, retirees, and rental owners. Safe-harbor rules based on your prior-year tax can protect you from penalties even if your income jumps. Note that California front-loads its estimated payment schedule, which surprises many new residents. I prepare customized payment vouchers for clients so there's no guesswork.

What is the California pass-through entity tax (PTET) election, and can it save me money?

California's PTET lets S-corporations and partnerships pay state income tax at the entity level, converting a limited personal deduction into a fully deductible business expense, with the owners claiming a credit on their California returns. Even with the higher federal SALT deduction cap in effect through 2029, the election still produces meaningful federal savings for many higher-income owners. It has strict deadlines and prepayment requirements, so it must be planned before year-end — not at filing time.

TAHOE SHORT-TERM RENTALS

How is my Tahoe vacation rental taxed — Schedule C or Schedule E?

Most Tahoe vacation rentals are reported on Schedule E. Schedule C generally applies only if you provide hotel-like services to guests, such as daily cleaning or meals. Separately, if your average guest stay is seven days or less, special rules treat the activity differently under the passive-loss rules — which creates both planning opportunities and traps. Getting this wrong affects your self-employment tax and your ability to deduct losses.

Do I need a permit and TOT license to rent out my Placer County cabin?

Yes. Short-term rentals in the unincorporated North Lake Tahoe area of Placer County require a county short-term rental permit, and you must register to collect and remit transient occupancy tax on your rental income. Booking platforms may collect some taxes for you, but the permit, registration, and reporting obligations remain yours — and the county actively enforces.

What expenses can I deduct on a short-term rental?

Typical deductions include mortgage interest, property taxes, insurance, utilities, cleaning and management fees, repairs, supplies, HOA dues, and depreciation on the building and its furnishings. With 100% bonus depreciation restored, furniture, appliances, and certain improvements can often be written off in full in the year placed in service. If you also use the cabin personally, expenses must be allocated under the vacation-home rules — the spot where most self-prepared returns go wrong.

Can my rental losses offset my W-2 income?

Sometimes. Rental losses are normally passive and can't offset wages, but there are exceptions: a limited allowance for moderate-income landlords, and — important for Tahoe owners — special treatment for short-term rentals with average stays of seven days or less where you materially participate. California's passive-loss rules differ from federal law in key respects, so a loss that works federally may not work on your state return. This is one of the most valuable planning areas for rental owners, and one of the most commonly botched.

We're buying a cabin with friends — LLC or tenants in common?

It depends on your goals. An LLC provides liability protection and a clean framework for shared decision-making, but requires a partnership tax return and California's $800 annual tax. Tenancy in common is simpler and lets each owner report their share directly, but offers no liability shield and can complicate financing and exits. 

INDIVIDUALS & MULTI-STATE ISSUES
I moved to Tahoe partway through the year — do I file in two states?

Usually yes. You'll typically file part-year resident returns in both states, splitting income based on your residency dates and where it was earned. California taxes you on all income while you're a resident, plus California-source income while you're not. The move-year return is the one to get right, because it establishes when your California residency began or ended.

I live in Nevada but work in California (or vice versa) — where do I pay tax?

State income tax generally follows where the work is physically performed, not where your employer sits. If you live in Nevada but work in California, your California workdays are taxable by California. If you live in California, you owe California tax on all your income no matter where you earn it — Nevada's lack of an income tax doesn't help a California resident. Good day-count records make all the difference.

I work remotely for an out-of-state company — how is my income taxed?

For most remote employees, wages are taxed by the state where you physically do the work — so a Nevada-based remote employee of a California company generally isn't taxed by California on those wages. The analysis changes if you spend workdays in California, hold equity compensation earned over years that span a move, or serve as an officer or director. These returns reward careful sourcing and documentation.

How does California decide whether I'm a resident?

California looks at where your closest connections are: your home, spouse and family, time spent, driver's license, voter registration, doctors, and more. There is no single bright-line test, and forwarding your mail to Nevada while keeping your life in California does not work — the Franchise Tax Board audits these moves aggressively. If you're planning to leave California, do it deliberately and document it, ideally with advice before the move rather than after the audit letter arrives.

TRUSTS & ESTATES
When does a trust have to file its own tax return?

A trust generally must file a federal return (Form 1041) once it has $600 or more of gross income for the year, any taxable income, or a nonresident alien beneficiary. California has its own filing rules (Form 541) that can be triggered by the residence of a trustee or beneficiary — even when the trust has no California income. Many successor trustees don't realize a return is due until penalties are already accruing.

A family member passed away — what tax filings are needed?

Usually three things: the decedent's final individual return covering January 1 through the date of death; income tax returns for the estate or trust for income earned after death; and, for larger estates, a federal estate tax return — though with the exemption at roughly $15 million per person in 2026, most families won't owe estate tax. There are also elections and basis step-up issues in the year of death that can save real money when handled promptly.

Who pays the tax on trust income — the trust or the beneficiaries?

It depends on whether the income is distributed. Income the trust pays out to beneficiaries is generally taxed to them, reported on a Schedule K-1; income the trust retains is taxed to the trust itself, at rates that reach the top bracket at a very low income level. Because trusts hit top rates so quickly, distribution timing is one of the most effective planning tools in trust administration.