![]() The tax is imposed at the highest individual rate. 1, 2021, Minnesota will be joining a growing number of other states that have enacted an elective pass-through entity level tax. The Tax Cuts and Jobs Act limited the state and local tax deduction on individual federal returns to $10,000. The bill also provides an exclusion from gross income for small business loan subsidy payments under the CARES Act and allows a deduction for associated expenses. Among the provisions included are the exclusion of PPP loans from taxable income, the deductibility of expenses used with the PPP loans and the exclusion of unemployment benefits up to $10,200 per individual. House File 9 expands the state’s conformity to include certain provisions of the CARES Act, Consolidated Appropriations Act of 2021, Further Consolidated Appropriations Act of 2020 and American Rescue Plan Act. Selective conformityīefore July 1, 2021, Minnesota conformed to the Internal Revenue Code as amended through Dec. Additionally, the new law provides for a pass-through entity tax election and a new film production credit. Two of the biggest developments, income and expenses from Paycheck Protection Program (PPP) loans and unemployment income exclusions, align Minnesota with the majority of other states addressing those issues. Tim Walz signed into law House File 9, providing a number of significant tax-related developments. ![]()
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