There has been a lot of changes when it comes to your taxes this year – How will you take advantage? These are some things you may want to consider as you schedule your 2020 farm tax planning meeting: Filing farm tax returns on or before April 15th is possible if you elect to make a tax deposit by January 15th This is a viable option when you have a number of tax documents that aren't received until the last week of February (right before the normal March 1st filing deadline) If farming as a C-corporation, the land rent paid to you does not qualify for the 199A deduction but would if you elected to be an S-corporation Utilizing commodity wage to pay employees will save payroll taxes for you and the employee If you Read More...
2020 Tax Planning Considerations for Individuals
How will you take advantage of all of your options during tax time this year? These are some things you may want to consider as you schedule your 2020 individual tax planning meeting: The IRS has launched an improved tool to help taxpayers check their withholding by doing a “Paycheck Checkup.” You will need your most recent paystubs and your most recent income tax return. Visit the IRS website to learn more. Maximize contributions to Health Savings Accounts. 2020 contribution limits are $3,550 for individuals and $7,100 for families. 2021 limits will be $3,600 for individuals and $7,200 for families. Individuals 55 and older can make an additional $1,000 catch up contribution. You can maximize your HSA contributions even if you did Read More...
Minnesota Conforms to Federal Section 179 Rules – Big Section 179 changes coming for Minnesota!
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...