We are located on the 3rd floor of the ParkPlace Building (corner of Broadway & Lake), 25 No. Lake St. Suite 300, Forest Lake, MN 55025.

See WORKSHEETS TO PRINT for an article on the rebates from Tax Hotline & A stimulus worksheet!

Small Business Act of May 27, 2007

Highlights

1. Kiddie Tax--Starting in 2008 the Kiddie Tax will apply to children 18 years and younger and students up to age 24.

2. Equipment expensing is now increased to $125,000 in 2007 and you now can go back and amend a return to either increase or remove the 179e expensing of equipment (this really helps in audits).

3. Tax Preparer Penalties are dramatically increased starting on 5-27. The jury is still out on whether this will affect individuals preparing their own return.

4. Partnership returns will no longer be required for a husband and wife running a business together. They can elect to prepare a separate Sch. C, E, or F instead of a 1065 form.

Prior Year Tax Changes in Effect this year

1. Mortgage Insurance Premiums are deductible this year!

2. You are allowed a one time rollover from an IRA to a HSA account in 2007. This is to help you fund your Health Savings Account without causing taxes on an IRA--very good and lets hope they extend this one.

3. We still have the Qualified charitable deduction of up to $100,000 directly from an IRA to your preferred charity.

4. New tuition form this year to help in figuring the tuition tax credit as a subtraction 

5. Domestic Production Activity Credit goes to 6% this year.