Should You Be Concerned About the New Nevada Commerce Tax?

Nevada has recently instituted a new tax referred to as the commerce tax. This tax is calculated on any gross receipts higher than $4 million at a rate classified by your NAIC code from the fiscal period of July 1st to June 30th of every year. 2016 is the first year for this tax return change, but this tax return is due even if you do not presently have gross receipts higher than $4 million. You may be responsible for completing a return, but you can contact our office to learn more about this obligation.  

You need to have these returns prepared and sent in by August 15^th, 2016. Although you may have just received your welcome letter from the state in order to register your business entity to submit this tax return online, bear in mind that the state of Nevada will not be providing you with tax returns directly. If you, for some reason, do not receive the welcome letter from the state of Nevada, you need to visit the state’s website in order to ensure that you have the appropriate Nevada business license. You are still responsible for completing the tax return if you meet the qualifications, whether or not you actually receive the letter.

This tax return applies to any entities with a business license including rental properties on an IRS schedule E. On the first page of the tax return, there is a checkbox indicating that you have gross receipts in excess of $4 million. In the event that your gross receipts do total more than $4 million, you may be eligible to take advantage of adjustments to lower your taxable amount, but you need to speak to your attorney as soon as possible. Since time is of the essence, reach out to our offices today to learn more how we can help you.