Importance of Valuations in Buy/Sell Agreements

Rochester Business Valuations

If you own a business jointly with others, we recommend you establish an owner buy/sell agreement which governs what happens in situations, such as disability or death of an owner or an owner wants to dispose of their ownership interest. The owners agree on how to proceed when certain events occur. This agreement should be drafted by an attorney and updated when circumstances change.

Claiming Business Deductions for Work-Related Education Costs

If you are headed back in the classroom, or thinking about it, you might be wondering if the tuition expenses are tax deductible. To be considered work-related education for business deduction purposes, the training must meet one or both of the following standards:

New Changes to Minnesota Sales and Use Tax Rate

Effective July 1, 2017

In addition to the regular sales tax, The Minnesota Department of Revenue collects local sales tax for some localities. The local sales and use tax applies to all the same items being taxed by the Minnesota sales and use tax law. 


Changes in Local Taxes for 2017

As of January 1, 2017, Cook County, Mille Lacs County, Pine County, and Winona County increased their tax rate by 0.5 percent to include the Transit sales and use tax. The newest change, occurring on July 1, 2017, is an increase in the transit sales and use tax to Olmsted County. The rate increased to .5 percent from .25 percent.


Best Choice: A Board of Directors or an Advisory Board?

To survive and thrive in a competitive marketplace, companies need to secure help and guidance from a wide range of sources. To do so, many companies create advisory boards, or more formally, a board of directors to help guide them and hopefully facilitate growth. If your company plans to go public, it will be required to put a board of directors in place. However, prior to that time, you may be faced with the decision as to whether to create a board of directors or an advisory board. To determine which path makes most sense for your organization, here are some of the primary differences between a board of directors and an advisory board:


Unlock the Biggest Possible Deduction for a Home Office

The IRS recently issued a reminder about claiming the home office deduction. In particular, it explained a simplified method that offers a time-saving option. But many taxpayers who maintain a home office fare better tax-wise by deducting expenses under the regular method. Others may not be eligible to deduct any home office expenses. Here's why.

Most home-related expenses, such as utilities, insurance and repairs, are not deductible. But if you use part of your home for business purposes, you may be entitled to deduct a portion of these everyday expenses, within certain limits. 


Reclassifying Business Expenses as Constructive Dividends

To be deductible, a business expense must be both ordinary and necessary. An ordinary expense is one that is common and accepted in your field of business. A necessary expense is one that is helpful and appropriate for your business.

The IRS sometimes challenges deductions claimed for certain types of business expenses. In doing so, an examiner might claim payments made by a corporation to a shareholder for personal items or that are above or below fair market value constitute "constructive dividends." Reclassifying business expenses as dividends has adverse tax consequences, as a recent case demonstrates.


Green Tax Breaks: Are You Claiming All the Credits You Deserve?

In recent years, the IRS has offered "green" tax credits to individuals who purchase qualifying residential energy-efficient equipment and certain electric vehicles. Some of these breaks expired at the end of 2016. But others are still ripe for the taking in 2017 and beyond. Here is what you need to know to take advantage.


Tax Considerations Before Tying the Knot

Minneapolis Tax Planning - Minneapolis CPA

Summer — the traditional wedding season — is just around the corner. Marriage changes life in many ways. Here is how it may affect your tax situation.


Marital Status

Your marital status at year end determines your tax filing options for the entire year. If you are married on December 31, you will have two federal income tax filing choices for 2017:

  • File jointly with your spouse, or
  • Opt for "married filing separate" status and then file separate returns based on your income and your deductions and credits.

Here are two reasons most married couples file jointly:

10 Simple Ways to Cut Taxes This Summer

It is already starting to feel like summer in many parts of the country. But the forecast for Washington remains unclear as officials continue to discuss various tax-related issues. No matter what happens in Washington, do not get stuck in a holding pattern yourself. Give some attention to business and personal tax planning this summer.


Here are 10 ideas that combine tax planning with summertime fun.


Six Financial Survival Tips for Recent College Graduates

Graduation can be one of the most exciting — and intimidating — times in your life. You are officially an adult, and with that new-found independence comes financial responsibilities. No pressure, but the decisions you make today about spending and saving can mean the difference between struggling for the rest of your life and building a solid financial future.

Here's a list of important questions to consider as you start your journey: