Individual Tax Strategies

Timing and Taxes: Two Critical Issues when Buying or Selling a Home

You might be in a rush to buy or sell a home before summer starts or interest rates increase even more. But, first, it's important to review the tax rules related to home sales and deductions for mortgage interest, property taxes and work-related moving expenses. Beware: Some rules have changed under the Tax Cuts and Jobs Act (TCJA).

How the New Limit on SALT Deductions Affects Homeowners

The ability to deduct state and local taxes (SALT) has historically been a valuable tax break for taxpayers who itemize deductions on their federal income tax returns. Unfortunately, the Tax Cuts and Jobs Act (TCJA) limits SALT deductions for 2018 through 2025. Here's important information that homeowners should know about the new limitation.

Timely Tax Planning for Your Investments and Capital Gains

When determining whether to buy or sell a security, several factors may affect your decision: your goals, time frame, and risk tolerance, to name a few. One factor that should never be dismissed, however, is the tax consequence(s) of your purchase or sale. With proper tax planning, it’s possible to recognize a certain amount of capital gains tax-free. Here are a few tips to get started...

How to Plan Ahead to Avoid Minnesota Residency Tax Surprises

Moving to Another State but Keeping a Second Home in Minnesota? For many Minnesota residents and retirees, there may come a time when they decide to move to warmer climates or to states with low or no individual income tax. However, they also want a place to come back to throughout the year and decide … Continued

Numerous Tax Break Extenders and Savings Opportunities for Individuals

At the end of last year, the Protecting Americans from Tax Hikes Act of 2015 was signed into law. Known as the PATH Act, it does more than just extend expired and expiring tax provisions for another year. The new law makes many temporary tax breaks permanent. This provides some stability in planning. When it comes … Continued

2015 Individual and Business Tax Extenders in the PATH Act

In December, the House and Senate approved the “Protecting Americans from Tax Hikes” (PATH) Act of 2015. The President signed this legislation referred to by tax professionals as “The Tax Extenders Provision”, which extends or modifies many extensions/changes that tax payers should discuss with their CPA.

Tips to Avoid Tax Refund Fraud in 2016

As we wind down 2015, it’s important to remember that identity thieves may be looking ahead to the upcoming 2016 tax season.  Krebs on Security, an in-depth security news and investigation blog, presents a good article on the latest battle between the IRS and the criminals looking to file bogus tax refunds. And while the … Continued

Foreign Earned Income Exclusion – Not for the Faint of Heart

Before you accept an assignment to work and earn income abroad, understand what needs to happen in order to achieve tax benefits that are available. In one such case, an individual was working in Russia for a number of years and was audited by the IRS.

S Corporation Officer Must Take a Salary

Do you operate your business as an S corporation? If you work for the corporation, you generally must take a salary. An officer who performs more than minor services for a corporation, and who receives remuneration in any form, is considered an employee and is subject to employment taxes.

How to Protect Against Tax Identity Theft

Tax identity theft is a growing epidemic. Identity thieves typically engage two tax fraud scams: Refund fraud. The thief files a fraudulent tax return, reporting fictitious wages and withholdings, usually early in the year before companies are required to issue 1099s and W-2s.

Want Tax-Free Income? There Are Still Ways to Receive It.

You may think you have to pay tax on all income you receive but it’s not true. There are still ways to earn income that is free from federal income tax. With the various tax increases that took effect at the beginning of this year, tax-free income opportunities are more valuable than ever.

Tax Implications in the Supreme Court DOMA Case

A recent Supreme Court decision now allows same-sex couples in states with same-sex marriage statutes to be treated as married for federal tax purposes. The U.S. Supreme Court’s Defense of Marriage Act (DOMA) ruling has important federal tax implications for same-sex couples who are legally married under applicable state law.

DOMA Ruling – Income and Estate Tax Planning in Minnesota

On June 26, 2013, the U.S. Supreme Court struck down in the Windsor case a critical section of the Federal Defense of Marriage Act (DOMA), thereby enabling married* same-sex couples to enjoy the same legal rights as opposite-sex married couples. These include income tax benefits, taxpayer friendly employee benefits, estate and gift tax benefits, and more.

IRS Cracks Down on Tax ID Theft: Could You Be a Victim?

As taxpayers were filing their returns in 2013, the IRS announced a national crackdown on identity theft schemes aimed at stealing taxpayers’ refunds. The tax agency expanded a program designed to help law enforcement obtain tax return information about victims, which is critical to efforts to investigate and prosecute cases of tax identity theft.

Minnesota Tax Law Changes – Income Tax

The omnibus tax bill passed by the legislature and signed by Governor Dayton on May 23, 2013 made sweeping changes that affected Minnesota taxpayers as well as entities and individuals doing business in Minnesota. The tax bill is projected to raise approximately $2.1 billion in additional revenue and would eliminate the state budget deficit.

New Limits on Flexible Spending Accounts for 2013

Until this year, there was no tax-law limit on contributions to an employer’s healthcare flexible spending account (FSA) plan (although many plans impose their own limits). But the FSA situation has changed beginning in 2013.

A New Option for Deducting Home Office Expenses

The IRS announced a simplified option that many owners of home-based businesses, and some home-based workers, can use to figure their deductions for the business use of their homes. (IRS Revenue Procedure 2013-13)

Tax Changes for Individuals in the ‘Fiscal Cliff’ Law

After months of arguing about the “fiscal cliff,” Congress finally passed a law averting some of the tax increases that were set to take effect on January 1, 2013. The American Taxpayer Relief Act of 2012, also known as the “fiscal cliff legislation,” was signed into law by President Barack Obama on January 2, 2013.

Avoid Taxmageddon: Year-End Planning for Real Estate Owners

Real estate sellers and investors may be facing higher taxes next year as a result of a new surtax and a bunch of tax breaks that are scheduled to expire. The “Bush tax cuts” are scheduled to expire at the end of this year (see right-hand box). If that happens, tax rates will go up for everyone next year.

WebTaxGuide – Tax Planning Begins Here

As we have done for our clients since 1950, we can help you understand these important changes and make the right decisions. DS&B employs the right strategy with the right people for your business, individual and financial situation – whether you operate locally, regionally or internationally.