10/27/2020: The $1.36 billion bonding and tax bill signed by Gov Walz on October 21st includes full section 179 expensing conformity to the federal tax law as well as a provision to retroactively fix tax increases for like-kind exchanges in tax years 2018 and 2019. The Tax Cuts and Jobs Act (TCJA) signed into law in December 2017 was the most sweeping tax legislation since 1986. The law included the ability to expense up to $1 million with an investment limit of $2.5 million (adjusted each year for inflation). The law also eliminated the ability to utilize the like kind-exchange rules for equipment thus requiring a taxpayer to add to taxable income the gain from a trade of equipment. The taxpayer could then offset the gain by utilizing Read More...
Archives for October 2020
Announced Today – HBIIP Grants Awarded
U.S. Secretary of Agriculture Sonny Perdue announced in a press conference today in Albert Lea, MN, the awarding of a series of grants as part of the HBIIP (Higher Blends Infrastructure Incentive Program). Retailers recently applied for up to $100 million through the USDA for higher blend renewable fuel infrastructure. Christianson PLLP, working with the Renewable Fuels Association (RFA) in tandem with local retailers was an integral part of the application process for over $31 million dollars in HBIIP funding to facilitate increased sales of ethanol and biodiesel. The HBIIP grant program is intended to make available up to $100 million in competitive grants for activities designed to increase the sales and use of higher blends of Read More...
IRS Rules on Business Meals and Entertainment
10/7/2020 - Our experts here at Christianson know how important it is to be on top of the latest news that may impact your business. We want you to be aware that late last week, the Internal Revenue Service (IRS) announced updated guidance on the business expense deduction for meals and entertainment following law changes in the Tax Cuts and Jobs Act (TCJA). In 2017, when the TCJA was released, these expenses which were incurred for events that could be considered entertainment, amusement, or recreation would no longer be deductible. The latest regulations from the IRS outline the following: Taxpayers may continue to deduct 50 percent of the cost of business meals if the taxpayer (or an employee of the taxpayer) is present and the Read More...
Financial Audit During a Global Pandemic
2020 has thrown us some major curveballs. Despite the many disruptions of this global pandemic, the team at Christianson wants you to remember that your annual financial statement audit must go on. It may look a little different than it has in the past, so we encourage you to consider the following as you prepare for your year-end audit. Prepare for remote inventory observation and audit fieldwork Government restrictions and/or company policies may limit your auditor’s ability to travel this year. At Christianson, we’ve been performing remote inventory observations and remote audit fieldwork for over a decade in order to serve our clients across the nation. We’ve developed a streamlined process to perform your audit efficiently Read More...
FFCRA W2 Reporting Requirements Clarified
Did you have an employee who was unable to work or telework due to reasons related to COVID-19 and who received wages under the Families First Coronavirus Response Act (FFCRA)? If you answer yes, did you know that these wages need to be included on Form W2 in Box 14 in addition to being included with the employee’s other taxable income in Box 1, 3, 5, and 16? Per guidance issued by the Internal Revenue Service (IRS), employers must separately state the total amount of qualified sick leave wages and qualified family leave wages paid. There are three different categories to be used when determining COVID wages: National Paid Leave Employee: Your employee is sick and under quarantine with COVID-19. National Paid Leave Family: Your Read More...