Mike Crabtree's Articles

Minnesota Revenue Begins the Adjustment Process

As a result of the federal tax conformity legislation that was signed into law by Governor Walz at the end of May, the Minnesota Department of Revenue now has the job of adjusting certain 2017 and 2018 tax returns that were filed before the Department updated its forms this past August. In order to make these adjustments, Minnesota Revenue will, in many cases, need to ask taxpayers for additional information.

Opportunity Zones Can Provide Big Tax Benefits

Qualified Opportunity Zones are a creation of the new Code Sections 1400Z-1 and 1400Z-2, enacted in the Tax Cuts and Jobs Act (TCJA) in December 2017. These provisions are intended to incentivize investment in economically challenged areas by giving tax benefits to investors. 

 

The tax benefits from Opportunity Zones come in two forms: A deferral of current capital gain, and the potential exclusion of future capital gain. 

 

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Standard Mileage Rates Increase for 2019

The IRS has issued the standard mileage rates for 2019. The business-use standard mileage rate for 2019 is 58 cents per mile, up 3.5 cents from 2018. The standard mileage rate for moving and medical purposes will be 20 cents per mile in 2019, up two cents from 2018. The charitable mileage rate is set by statute at 14 cents per mile, so that did not change.

Rental Real Estate Reporting Policies Have New Significance

Smaller-scale real estate rental activities are generally considered to be exempt from Form 1099 reporting requirements. With the arrival of the new pass-through income deduction of Code Section 199A, the determination of whether or not to file 1099 forms has new importance.

Highlights of the Tax Cuts and Jobs Act for Bankers

Michael A. Crabtree, J.D., CPA, Partner, wrote an article entitled, "Highlights of the Tax Cuts and Jobs Act for Bankers," for the Minnesota Bankers Association's March/April 2018 issue of MBA News. Click here to read the article.

Minnesota has a New Social Security Income Subtraction

As part of the Minnesota Omnibus Tax Bill that was signed into law in May 2017, Minnesota now has a subtraction from income for certain Social Security and Tier 1 Railroad Retirement benefits. The maximum subtraction is $4,500 for married/joint filers and surviving spouses. The maximum subtraction is $3,500 for single and head-of-household filers. The maximum subtraction is $2,250 for married/separate filers.

Don’t Miss Clean Energy Tax Opportunities: Your Business or Clients Can Benefit

Clean energy has been—and continues to be—a hot topic. With all the debate surrounding climate change and its effect on severe weather (recent hurricanes Harvey, Irma and Maria, for example), and an increasing concern about clean air and water, there is a general consensus that we need to reduce our consumption of fossil fuels. Clean energy—solar, wind, hydroelectric, geothermal and bioenergy—is key to accomplishing this.

What’s Trending: Minnesota Tax Law Changes

The tax bill signed into law by Governor Dayton last May provides new tax credits and subtractions, and makes numerous changes to Minnesota income, estate, sales, property, and other taxes. Some of these changes are effective retroactively and some prospectively, but most of the income tax provisions are effective beginning in 2017.

Deducting Losses from Natural Disasters

Recent hurricanes Irma and Harvey call attention to the federal tax deduction available for casualty losses. Deductible casualty losses are limited to identifiable events, not gradual wear and tear, termite damage, or natural aging. Hurricanes clearly meet this requirement. Floods, fires, tornados, accidents, theft or vandalism are also considered casualty events. If you have encountered an unexpected loss, contact us to determine how to proceed.

Minnesota Omnibus Tax Bill Makes Several Changes

The omnibus tax bill signed into law by Governor Dayton provides new tax credits and subtractions, and makes numerous changes to Minnesota income, estate, sales, property, and other taxes.  Some of these changes are effective retroactively and some prospectively, but most of the income tax provisions are effective beginning in 2017.  

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