2012Media Placements ~ The Abbi Agency

J.A. Solari And PartnersTable of Contents

Date Publication Title

11/26/2012 Northern Nevada Business WeeklyPlan For The Tax Season By Celebrating A Season Of

Giving

9/6/2012 Reno Gazette Journal Solari: Donor-Advised Funds Flourish As Tax Changes Loom

8/7/2012 Reno Gazette Journal California Costs More

8/1/2012 Reno Gazette Journal John Solari: Plan In Advance For Estate Tax Changes in 2013

3/8/2012 Northern Nevada Business Weekly John Solari Of Solari & Sturmer (Interview)3/8/2012 Northern Nevada Business Weekly Solari And Sturmer Announces New Firm

3/8/2012 Northern Nevada Business Weekly Bill Saylor Of Solari And Strumer Passes Nevada CPA Exam

The holidays are both the season for giving and a time of year when your tax liabilities come into sharp focus. As you calculate your earnings and estimated taxes, December is a perfect time to consider philanthropy that can both benefit the community causes you support during the Christmas season, and also work in your favor when the April 15 tax day rolls around in 2013.

With looming uncertainty in the tax code in future years, especially regarding tax deductions and capital gains tax rates, giving in 2012 when tax deductions are intact and tax rates are known, also can have its advantages.

There are many ways to contribute to charities and non-profits. Each method has its own specific advantages and drawbacks. Your level of giving, your tax situation, and your desired time commitment will determine what form of charitable giving you choose this holiday season. Here is a quick look at six ways you can give this holiday season and what it might mean for your tax bill in 2013:

• Cash contributions to qualified charities

This is the simplest form of charitable giving. Simply write a check to the qualified charity of your choice and take the tax deduction for the charitable gift that comes along with your philanthropy. This makes sense for individuals who are giving modest gifts and do not want to deal with the hassle of lengthy paperwork or the complexity of setting up trusts or foundations. The tax benefits can still be significant.

• Donation of appreciated property

While donating property is more complex than giving cash, there are circumstances when property donation can be much more beneficial to both the charity and the donor than a straight cash donation.

Property that has significantly appreciated will count for a tax deduction at the property’s appreciated value with a proper third-party appraisal. This provides a significant tax deduction for the donor, without requiring the payment of capital gains tax on the property’s appreciation. The charity benefits from a full, pre-capital-gains-tax donation and the donor gets a significant tax deduction that can offset other tax liabilities.

Property can be a number of things: real estate, a vehicle or art work. Many charities also accept securities under similar circumstances. Check with your desired charity to see what property they accept as a donation and be prepared to work through a third-party appraisal to value any property donations.

• Create and contribute to a private foundation Setting up and running a private foundation costs money and takes time, but it gives large donors a level of control and over donations that is unique. Large charitable donations to a private foundation can be counted in the current tax year, but can be controlled by the foundation for years to come. With the uncertainty over future tax rates and deductions, large donors should consider the tax benefits of making large private foundation contributions this year, even if the foundation’s donations will be metered out to qualified charitable organizations over several years. Private foundations are not a fit for all philanthropists. But large

donors who have time to commit to their philanthropy, want control over their donations, and want the prestige of their own private foundation will find this an attractive option.

• Contribute to a community foundation Contributing to a community foundation has many of the benefits of forming a private foundation, but comes with a lot less time commitment. Community foundations such as the Community Foundation of Western Nevada are experts in philanthropy and will walk donors through setting up a fund under the community foundation umbrella that can be controlled by the donor for years to come. Similar to a private foundation donation, the tax benefits of a community foundation gift registers in the year the gift is given, while the funds can be dispersed to charities over several years. Most community foundations also handle donations of securities and property, as well as cash. If you are interested in donating to a local community foundation, contact the Community Foundation of Western Nevada, where the expert staff can walk you through the benefits of various forms of donating.

• Set up a charitable remainder trust A charitable remainder trust is a way to lock in the tax benefits of a charitable donation while still receiving income from assets or investments that will eventually be donated. Typically, a charitable remainder trust takes appreciated property and puts it into a trust. A set amount of income from the trust is paid to the trust owner each year. After the term of the trust expires, the trust’s balance is donated to charitable organizations. Charitable remainder trusts allow a taxpayer to deduct the amount of the eventual charitable donation in the year the trust is formed. These trusts are irrevocable and the income from the trusts can fluctuate with the value of the assets in the trust. But the tax benefits of creating a trust can be significant for donors looking at significant capital gains or estate tax liabilities.

• Set up a charitable lead trust A charitable lead trust is a complex donation tool that is appropriate for very wealthy donors who are willing to do a lot of planning for charitable donations. Charitable lead trusts give annual payments to a charity for a set period of years. These donations are tax deductible. Once the term of the trust expires, the remainder of the trust is given back to the trust’s founder, or his or her heirs.

Charitable lead trusts are typically used to reduce exposure to estate taxes, but are also irrevocable and complex. The benefit of a lead trust is that the assets continue to appreciate during the term of the trust, but that appreciation is protected from transfer and estate taxes under the charitable trust.

All of the above are ways individuals can certainly make a difference in their charitable giving and in their tax situations. It is always advisable to seek professional advisors who are well versed in these planning techniques. Happy Holidays !

John Solari is a certified public accountant and a partner in J.A. Solari & Partners LLC of Reno. Contact him at 775-827-3550 or through www.jasolariandpartners.com.

Solari: Donor-advised funds flourish as tax changes loom

Sep 6, 2012

As the tax debate in Washington rages on, one potential casualty of a changing tax code could be

generous tax deduction provisions on charitable giving. While the future of charitable tax

deductions is uncertain, a tax code change known as the “Pease” provision is set to return in

2013, reducing the value of itemized deductions for upper-income tax filers.

According to some tax experts, the changing tax code could result in a huge reduction in the tax

deduction value (up to an 80 percent drop, according to some tax experts) of charitable

contributions for the wealthiest individuals.

The potential tax implications of changing rules on charitable giving have given rise to an

increasingly popular charitable mechanism that locks in the tax benefits of today, while

distributing the charitable funds over the coming years.

“Donor-advised funds” are accounts set up by donors that are controlled by a tax-exempt

nonprofit. Charitable giving to a donor-advised fund results in an immediate tax deduction under

the current tax code, while allowing the donor to request “grants” be handed out to charities of

his or her choice throughout the following years. Two local charities that receive funding from

donor-advised funds are the Reno Rodeo Foundation and the Community Foundation of Western

Nevada.

The ability to reap the current tax code deduction benefits, while still planning the charitable

donations over several years, has spurred rapid growth in donor-advised funds. During the past

10 years, the funds controlled by Fidelity Investments, Charles Schwab and Vanguard have

increased by $10 billion, from $3 billion in 2002 to $13 billion in 2012. Between 2010 and 2012,

participation in these funds rose rapidly, with more than $2 billion jumps in total balances each

year, according to data compiled by The Wall Street Journal.

While the tax benefit of “donor-advised funds” is clear for many charitable givers, like all large

tax decisions, the process of setting up the fund must be done with meticulous care to avoid

hidden fees, unintended consequences or unforeseen complications.

A donor-advised fund is controlled by a sponsor, which can be a national institution like Fidelity,

Charles Schwab or Vanguard, a national philanthropic group or a local or regional charity.

Different sponsors have differing restrictions on grant-making and have different fund fees,

which should be thoroughly understood before creating the fund.

Also, think about what assets you plan to donate to the fund, and how those assets will be

handled by the sponsor. Cash and securities are the most common contributions to the funds, but

other assets may be handled by some sponsors.

An upcoming presidential election, the looming expiration of the Bush tax cuts, and uncertainty

on how the federal tax code will change in the face of increasing deficits all make thoughtful tax

planning increasingly essential in 2012.

Carefully planned charitable giving in 2012 can help individuals donate to the nonprofits they

desire to support in an orderly and organized manner, without being surprised by any rapid

changes in the tax code that could impact that giving.

John Solari is the managing partner of J.A. Solari & Partners. He has 25 years of accounting

experience and is also a member of the American Institute of Certified Public Accountants and

the Nevada Society of Certified Public Accountants.

8/7/2012

California Costs More.

This makes Nevada look more attractive for businesses, especially new ones and those struggling to contain costs, which in this climate is everyone.

And California keeps passing more restrictions on business. One example

is the Global Warming Solutions Act, signed by then-Gov. Arnold Schwarzenegger in 2006, which aims to reduce greenhouse gas emissions by 2020. It kicks into full gear this year and gets stricter over the next nine years.

This puts businesses in a pickle: they want to remain close to the markets and relationships they’ve developed but it’s getting harder to stay profitable where they are.

“We like to call it ABC — anywhere but California,” said James Renzas of The RSH Group, a California-based firm that has been assisting other companies for more than 30 years in finding the best location for their corporate facilities.

The Nevada Governor’s Office of Economic Development wants to spread the word that Nevada is a good option for businesses wanting to relocate or expand.

Toward that end, it’s hired The RSH Group to help find leads for

California companies that are getting fed up and might be good candidates for Nevada.

California, of course, is trying to keep firms from doing this. In fact, one California economic development executive says luring away companies won’t work in the long run.

The pitch

“What I’m telling companies is they have a rare opportunity to be close to California and to get their labor costs in line and move to a state that’s more business friendly,” Renzas said from his firm’s Southern California office.

“As a result of the worldwide recession, Nevada has a better labor market than it’s ever had. It’s got more skilled people available than ever before. Companies are shocked to find how good the labor force is there.

“And because of the cost of living (that’s lower in Nevada), it’s easy to relocate people from California coastal areas who going to get a bargain on housing costs and save a lot on their taxes.”

John Solari of the Reno corporate accounting firm J.A. Solari & Partners has worked with companies that relocated. He said it’s more than just cost savings that recommend this area, it’s easy access to great outdoor options and excellent, affordable higher education, especially the University of Nevada, Reno’s seismic laboratory, business school and engineering school.

“The quality of life in Northern Nevada — our bang for the buck is phenomenal,” he said.

Lower taxes, of course, are a selling point, too.

These include no personal income tax, no corporate income tax, no gross receipts tax, no franchise tax, no inventory tax. For those with lots of wealth, there are no inheritance or estate taxes.

Renzas said the tax benefit is huge for smaller companies, especially when profits are going to the owner.

“Often the savings on just the taxes will pay for the cost of the (new Nevada) facility alone,” he said.

Solari said a well-established firm might be too entrenched in a community to leave — families don’t want to move and there are interconnected business relationships — but a young one would find lots of advantages.

Kerry Goodsel has found that to be true. He’s president of Thermo-Stone USA, which makes high-tech heating elements. His young company moved to South Reno from Marina, Calif. about three weeks ago.

When asked why, Goodsel said, “There’s no advantage to doing business in California. … Workers comp is almost half (here). It was kind of shock to me. It’s the same company, same classification, same everything and just by moving 300 miles, my workers comp was cut in half.”

Reluctance

It sounds like a no-brainer to move to Nevada but most California businesses aren’t leaving.

Bob Burris, senior vice president of the Sacramento Area Commerce and Trade Organization, said, “The fact that everybody in the country is coming here (to lure away companies) is because there’s a lot that’s attractive here.

“Just because there are some negative comments (about taxes and regulations) or somebody is vocal about leaving, that doesn’t mean it’s a trend. There’s not a mass exodus.”

Some say the new clean air standards will drive out businesses, but Burris said he’s seen the opposite.

“We’ve seen an influx of new companies and technologies to solve those (clean air) issues,” he said. “There’s one from the East Coast whose sole purpose is to help decrease those emissions.”

Burris said the advantages of California include large population centers with a wide diversity of skill sets; a world-class college system that drives creativity; no weather issues; and air, rail and seaports that are helpful with international business.

The Sacramento area tried the strategy of enticing businesses from the Bay Area with its lower costs, but Burris said he doesn’t think it’s a sustainable mode of growth for any economy:

“Companies that move for incentives and costs will move on for the next incentives and costs. We’ve seen it many times.”

He said it’s better to build upon what makes your region unique.

Silver State strategy

Nevada’s director of economic development, Steve Hill, said the state’s plan to lure firms here creates desperately needed jobs in the short-term and is part of a longer-term targeted effort.

“California has taken some steps lately such as (the clean air act) that make it difficult for manufacturers to grow so we think there’s an opportunity there,” he said.

“And as you build critical mass around an industry, it tends to grow on its own.”

Hill is pushing expansion more than relocation. If businesses have difficulty growing in California, he wants to make sure they consider Nevada because once they’re here, they will see the advantages.

“We just think Nevada has a great message and presents a great business case. We need to make sure California companies know about that,” he said.

“Obviously, California has a lot of benefits but it also has drawbacks and we think Nevada has a lot to offer as well. Our business environment is a lot less onerous. We want to get word out.”

- Mark Robison, Reno Gazette-Journal

John Solari: Plan in advance for estate tax changes in 2013

Aug 1, 2012

Estate taxes can be one of the most significant, and most easily planned for, tax burdens a family faces. Recent changes in the estate tax code and looming increases in estate taxes for 2013 make planning ahead for a family’s estate more important than ever.

Significant estate tax reductions built into the 2010 Tax Relief Act will expire in 2013. This affects both the exemption levels and the maximum tax rates for estates and gifts. Exemptions on estate taxes, gift taxes

and generation skipping transfer taxes are set to drop from $5 million to $1 million. Meanwhile, the maximum tax rates for estates, gifts and generation skipping transfers will rise from 35 percent to 55 percent if the 2010 Tax Relief Act expires, and no new tax legislation alters rates.

The changes will mean significant new tax liabilities for families dealing with estates in 2013 and beyond. A 20 percent increase in estate tax could add hundreds of thousands of dollars to the tax bill for large estates, and the lower exemption limit makes it important for families with smaller estates to plan ahead for estate taxes they might otherwise not have had to pay under the previous exemption limits.

There are several very useful tax tools that families can use to plan

ahead for estate transfers and ensure that more of a family’s money ends up being passed down to future generations rather than being collected by the IRS.

One of the primary tools, which will become even more useful as the 2013 estate tax changes go into effect, is the Grantor-Retained Annuity Trust. A GRAT, when structured correctly, protects a family’s assets from increasing estate tax rates and decreasing exemptions, while organizing the distribution of the assets to heirs. A GRAT is particularly useful in protecting rapidly appreciating assets from high estate taxes, as the tax liability is triggered on the front end of the trust investment and can be reduced by the amount of the trust’s annuity payout.

A GRAT can eliminate uncertainty over estate tax changes and allow a family to protect stock, income-producing property and other investments without paying high tax rates.

Trusts also can be leveraged to purchase additional estate assets, which will allow families to plan ahead for estate taxes while still staying under the transfer tax threshold.

Even if a family chooses not to set up a trust, estate planning today can be a money-saving decision. Before

the tax exemptions on gifts lower from $5 million to $1 million in 2013, families can consider gifting a

significant amount of money to their heirs to take advantage of the higher exemption. In some cases, large

estates might consider gifting more than the $5 million (or $10 million for a couple) to take advantage of the

maximum 35 percent transfer tax bracket before it increases to 55 percent.

Estate planning is a complicated and intricate process, especially given the elements of the tax code that are expected to change significantly in 2013. Families still have time to plan wisely and take advantage of the advantageous elements of the 2012 tax code before the 2013 changes go into effect. A small investment in planning, researching and working with an accountant on an estate strategy today can pay very large dividends in future estate tax savings down the road.

John Solari is the managing partner of J.A. Solari & Partners. He has 25 years of accounting experience and is a member of the American Institute of Certified Public Accountants and the Nevada Society of Certified Public Accountants.

John Solari of Solari & Sturmer Mar 8, 2012

Northern Nevada Business Weekly: Tell us a little about your company — its specialties, its history, the size of its staff.

John Solari: We are a full-service accounting firm based in Reno. The thing that makes me most proud is our proactive role helping clients navigate through vital choices. Our specialties include real estate development, manufacturing, healthcare, aviation-related tax issues, and family wealth and estate planning. We also provide tax planning for businesses and individuals, financial statement audit and review services. Our staff of under 20 employees have developed sophisticated systems of accounting and financial planning and work to help our clients achieve success in their current and future financial programs.

NNBW: What role do you play in the company?

Solari: As the managing partner, I manage the resources within the

office while meeting clients’ needs and developing new business opportunities for the firm. I also try and make sure we stay connected to our team members, clients and the community.

NNBW: How did you get into this profession?

Solari: My transformation into this profession began when I switched from an engineering major to an accounting major. Both are technical fields but I found I gravitated toward accounting because here I have the opportunity to build relationships with clients and enable them to solve important issues. There is nothing I enjoy more than finding a way to navigate a complex situation.

NNBW: What is something no one knows about your job?

Solari: Although, generically speaking, accountants may not have the reputation of being communicators, our business is as much a communication business as it is about the numbers and strategies. We get to deal with the best and the brightest of businesses — the owners and the visionaries.

NNBW: If you could have had any other profession what would it have been? Why wasn’t it your first choice?

Solari: Professional cowboy. No need to explain. I made the right choice. NNBW: What do you like to do when you’re not working?

Solari: Team roping, training for triathlons and downhill skiing with my two boys.

NNBW: Have any advice for someone who wants to enter your profession? Solari: First, walk in the client’s shoes and see the world and company through their eyes. Always stay positive. Innovate and think proactively.

NNBW: If you could have one superpower, what would it be and why would you want it? Solari: Maybe not a superpower but real close: coaching and mentoring skills of Lou Holtz, business acumen of Warren

Buffet, athletic determination and endurance of Mark Allen, wit and philosophy of George Burns.

NNBW: What’s the best advice anyone ever gave you? Solari: Don’t be afraid to make a decision and never take yourself too seriously.

NNBW: What do you like most about your job? What do you like least? Solari: The things I like most about my job are getting to deal with people and solving issues. What I like least is making difficult decisions in unfavorable financial situations. We deal with highly personal information at times and do everything we can to get the best possible outcome from any situation for our clients.

NNBW: What five words would most people use to describe you? Solari: Positive, energetic, social, hard working and active.

The basics:

Name: John Solari, CPA and managing partner with Solari and Sturmer

How long have you been in this job? 20 years

How long in the profession? 25 years

Education: B. S. Accounting, University of Nevada, Reno

Best book you’ve read? “The Inner Game of Tennis”

What’s on your iPod? Country and rock

The best movie ever? “Secretariat”

Spouse, kids or pets? Two boys, Colby 19 and Casey 17, and four horses

Solari and Sturmer Announces New Firm

Mar 8, 2012

(Reno, NV) – The northern Nevada based Certified Public Accounting Firm Solari and Sturmer

announced today that the firm has changed its name to J.A. Solari & Partners.

“We are excited to have a new name reflecting the growth of our company,” said John Solari,

Chief Executive Officer and managing partner of J.A. Solari & Partners. “This is a great time for

this change to occur. We are confident our new name will serve us well.”

J.A. Solari & Partners is a full-service accountancy firm with principals practicing in northern

Nevada for 25 years. They specialize in real estate development and construction,

manufacturing, healthcare, family wealth and estate planning and other professional services.

Bill Saylor of Solari and Sturmer Passes Nevada CPA Exam

Mar 8, 2012

(Reno, NV) - The Certified Public Accounting Firm of Solari and Sturmer announced today that

Bill Saylor, a staff accountant, has passed the CPA exam in the State of Nevada. This is a

significant step in Saylor’s progress toward becoming a licensed CPA.

Saylor has more than 16 years of experience as a controller in the technology and construction

industry. He has been with Solari and Sturmer since 2010. In his position, Saylor assists in the

completion of client work including accounting and audit services. He also works to provide

clients with consulting services and documenting internal control services to improve their

company structure.

Saylor earned a Bachelor of Science in accounting from the University of Nevada, Reno.