Minnesota limits Section 179 to $25,000 with an investment limit of $200,000. Minnesota allows taxpayers to claim the full bonus amount, but it’s apportioned over a six-year period. Taxpayers get 20% of the bonus depreciation, in the year the asset is placed in service. The other 80% must be added back, which is recovered when […]

Health Savings Account (HSA) contribution limitations for 2020 are listed below.  Contributions to a HSA are tax deductible or pre-tax as a payroll deduction.  Funds from an HSA account can be used to offset deductibles, copays, and other qualified medical expenses.  Excess contributions are not deductible and are subject to penalty unless the excess contributions […]

Children who have investment income greater than $2,600 may be subject to tax. The next unearned income is taxed under the same rates and brackets as trusts and estates. This tax has been expanded in a very complex manner to potentially apply children under age 24 as of year-end. This extended version of the kiddie […]

The table below summarizes the standard deduction for 2019:   Filing Status Standard Deduction Additional for elderly and/or blind Single $12,200 $1,650 Head of Household $18,350 $1,650 Married Filing Joint $24,400 $1,300 Married Filing Separate $12,200 $1,300  

Beginning on January 1, 2018, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be: 58 cents per mile for business miles driven, up from 54.5 cents for 2018 20 cents per mile driven for medical or moving purposes, up from 18 cents for 2017 14 cents […]

Health Savings Account (HSA) contribution limitations for 2017 and 2018 are listed below.  Contributions to a HSA are tax deductible or pre-tax as a payroll deduction.  Funds from an HSA account can be used to offset deductibles, copays, and other medical expenses.  For more information visit the IRS website to review Publication 969. H.S.A. CONTRIBUTIONS 2017 […]

The table below are the retirement contribution limits for 2017 and 2018.  Individuals have until the due date of their tax return (April 17, 2018 for 2017 Individual Income Tax Returns) for certain retirement plans.  In addition, certain individuals may qualify for the retirement savers tax credit for their contributions.  Additional catch up contributions may […]

The minimum wage for Minnesota will increase for inflation January 1, 2018.  The new minimum wage rate for large employers will increase to $9.65 per hour (from $9.50 currently) and small employers will increase to $7.87 per hour (from $7.75 currently).  PROVISIONS Thru 12/31/2017 Effective 1/1/2018 Larger Employer $9.50 $9.65 Small Employer $7.75 $7.87 90 […]

Beginning on January 1, 2017, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be: 53.5 cents per mile for business miles driven, down from 54 cents for 2016 17 cents per mile driven for medical or moving purposes, down from 19 cents for 2016 14 cents […]

The length of time you should keep a document depends on the action, expense or event.  Generally you should keep a copy of your tax return and your records that support an item of income, deduction or credit shown on your tax return for 3 years.  Health care information statements should also be kept for […]