Redpath Insights

Changes to 2020 Form W4 for Employers and Employees

The Internal Revenue Service has made extensive changes to Form W-4 (Employee’s Withholding Certificate) to adjust employee withholding calculations to better align with the Tax Cuts and Jobs Act. For some, the form in its current 2019 layout...

Minnesota Tax Conformity to Federal Tax Cuts and Jobs Act

On Friday, May 31st, Governor Tim Walz signed into law Minnesota’s response to the federal Tax Cuts and Jobs Act (TCJA). House bill No 5 lays out these changes. Minnesota adopted many of the changes made to the Internal Revenue Code, with several...

Opting Out of S Corporation Status at the State Level to Avoid the $10K SALT Deduction Cap

With the Tax Cuts and Jobs Act limiting an individual taxpayer to a $10,000 ($5,000 for married filing a separate return) state and local tax (SALT) itemized deduction, many taxpayers no longer benefit from itemizing their deductions. Limiting...

Saying No to the Business Interest Expense Deduction Limitation

Taxpayers who are in the real estate or construction industry may benefit from making an election to not be subject to the business interest expense deduction limitation that came about through tax reform.

Newly Proposed Opportunity Zone Regulations

The IRS recently released a set of proposed updated guidance around opportunity zones. You can view a qualified opportunity zones map by clicking here, or read our previous article on the subject by clicking here. Additionally, if you’d like to...

How Can You Reduce Your State Tax Apportionment?

Owners of pass-through entities (S corporations, LLC/partnerships) that sell services or sell/license the right to use intangibles may benefit from analyzing how revenue is being sourced if the owners are residents of states with no income tax...

The Impact of Tax Reform on Merger and Acquisition (M&A) Transactions

Buyers and sellers have always taken taxes and tax law into account when evaluating a potential transaction. Sellers want to make sure that the proceeds they receive, net of their tax liability, is appropriate for what they think the company is...

Should the Minnesota Angel Tax Credit Come Back?

The Angel Investment Tax Credit was a program offered by the state of Minnesota from 2010 to 2017 that gave investors into tech, energy, IT, or other companies 25% of their investment backβ€”and some say that it’s time to bring it back for good.

Final Regulations for IRS Section 199A Deduction

On Friday, January 18, 2019, the IRS released final regulations under IRC Section 199A (the new 20% pass-through deduction). The regulation and accompanying guidance are largely similar to the proposed regulations issued in August with a few...

Are You Eligible for the IRS 199A Rental Property Tax Deduction?

The question of whether rental property is eligible for the new 20% pass-through deduction is a significant question within the new tax law. The recently released final regulations under IRC 199A, as well as an accompanying notice of a proposed...