Special Once in a Lifetime IRA transfer to HSA

Special Once-in-a-Lifetime IRA transfer to HSA  IRS Notice 2008-51Once per lifetime an individual may make a tax-free, trustee-to-trustee transfer to their HSA from an IRA or Roth IRA, but not from a SEP-IRA or SIMPLE-IRA unless no current contributions had been made to the SEP or SIMPLE for the same plan year. The maximum qualified HSA funding distribution depends on the HDHP coverage (self-only or family) you have on the first day…  Read more

Which home loan is right for you?

Home Considering home ownership? Congratulations! Buying a home is an exciting milestone and for most people, one of the biggest investments they’ll ever make. Among the many decisions to be made along the way, you’ll need to choose the best mortgage option for your circumstances. In this blog we’ll weigh the pros and cons of fixed, variable, and revolving credit home loans to help you make the right choice. Why…  Read more

What to do if you get audited

Audited No one looks forward to a letter from the taxman requesting a closer look at the books. If you’ve received an audit letter – an official request by the tax authority to review your accounts and confirm your taxes have been paid to date – don’t panic. Prepare and call us. These four steps will help you get through the process with minimal stress and the best possible outcome.…  Read more

Tactics for paying down debt faster

Very few business owners have the means to operate without borrowing at start up, or later on when it’s time to invest in growth. Borrowing, however, is only a temporary solution to a lack of funds. Without a repayment plan debt can grow into an unmanageable problem that costs much more than the initial loan. These strategies will help you re-pay your debt faster, so you can invest the cash…  Read more

Restaurant Qualified Improvements

  The Tax Cuts and Jobs Act that was passed late last year repealed the qualified retail, restaurant and leasehold improvement rules and replaced them with a new qualified improvement property acquired and placed in service after 12/31/2017 and before 12/31/2022. Qualified improvement property consists of interior modifications to commercial property (except elevators, escalators and enlargements). Prior laws enabled write offs for much of the improvements to a space which…  Read more

Changing Accounting Methods

August 3, 2018 the IRS released Revenue Procedure 2018-40 regarding changing accounting methods because of last year’s Jobs Act.  This is another attempt to simplify the lives of small business taxpayers.  Unfortunately, it is complicated before it gets simpler. Who is eligible?  Taxpayers with average revenues for the 3 prior years of $25 million or less that are currently using the accrual method accounting may change back to the cash…  Read more

Federal Tax Withholding for 2018

Federal Tax Withholding for 2018 – In late 2017 Congress passed a major tax bill which resulted in lower Federal taxes for many Americans.  When we reviewed taxes with our 2017 clients, we offered the warning “don’t spend it, ’cause they will want it back”.  In February of this year, the IRS changed their withholding tables and mostly reduced the amount of tax being withheld from paychecks.  The intention was…  Read more

Minnesota K-12 Tax Benefits

K-12 Education Credit For parents, it’s almost time to start back-to-school shopping. Most school supplies could qualify for valuable K-12 tax benefits on your 2018 Minnesota income tax returns. Do not forget to save your school supply receipts. “Each year, parents invest in their children’s education by purchasing school supplies,” said Revenue Commissioner Cynthia Bauerly. “Keeping the receipts for these purchases can help parents save when it comes time to file…  Read more

Tax Reform Guidance

 Tax Reform Guidance “Job One” At IRS  Implementing the new tax law will dominate the guidance landscape for 2018, practitioners said at a recent Tax Reform Conference sponsored by the DC Bar Association.  NSA Executive VP John Ams, who attended the conference, said that a number of Treasury and IRS attorneys responsible for implementation of the tax reform bill were panelists at the conference but few had any answers.  “That’s…  Read more

Year End Taxes – 2017

A new Tax Bill was introduced in early December and we can be sure of at least one thing: future tax rates are going to change. Because this is a year-end 2017 letter, our guidance in this letter is aimed at 2017 tax planning rather than predicting 2018, but one thing we are pretty sure of is that tax rates will be lower in 2018. The general guidance for most…  Read more

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