Good news for all of our business owners, farmers, and self-employed clients. Minnesota has finally adopted Federal section 179 rules. In the past, when you purchased qualifying assets (such as equipment) we have been able to take up to $1,000,000 as a deduction for your Federal income taxes using section 179. For Minnesota income tax purposes, though, we were only able to take $25,000 of section 179 and then had to addback to your income 80% of any section 179 over $25,000. Now we will be able to take the same deduction on your Minnesota return that we take on your Federal return. This is effective for the 2020 tax year, and in very specific situations we can go back to your 2018 and 2019 tax returns and amend to take the full expense and get a refund for you. We will be looking into who is able to amend 2018 and 2019 to get this refund, and we will be contacting you.
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