HALF OF SALES HAD ACCEPTED
OFFERS IN UNDER 18 DAYS.
SO THERE COULD BE AN EXTRA
FEW THINGS TO THINK ABOUT WHEN
YOU FILE YOUR TAXES THIS YEAR.
YEAH.
THE IRS HAS SAID IT WILL START
ACCEPTING TAX RETURNS FEBRUARY
THAT'S LATER THAN THE USUAL
START DATE WHICH WOULD BE RIGHT
AROUND NOW, LATE JANUARY.
JOINING US LIVE ON SKYPE WITH
SOME OTHER THINGS TO CONSIDER
IS ADAM GARRING WITH BAKER
ADAM, THANKS FOR BEING WITH US.
GOOD MORNING.
THANK YOU FOR HAVING ME.
CAN WE START WITH THE
STIMULUS CHECKS?
BECAUSE MANY OF OUR VIEWERS
WILL HAVE RECEIVED TWO STIMULUS
WHAT HAPPENS WITH THAT MONEY?
YEAH, GOOD QUESTION, JASON.
THE RECEIPT OF THE FUNDS FROM
THE GOVERNMENT FOR THE STIMULUS
CHECKS IS NOT A TAXABLE EVENT
FOR BOTH MINNESOTA RESIDENTS
AND RESIDENTS OF OTHER STATES.
SO, AGAIN, NOT TAXABLE.
BUT PEOPLE SHOULD BE AWARE THAT
IF THEY DID NOT RECEIVE A
STIMULUS CHECK, AND THEY WERE
DUE ONE, YOU KNOW, THERE IS A
MECHANISM IN FEBRUARY WHEN THE
FORMS OPEN UP FOR PEOPLE TO
STIMULUS CHECK THROUGH THEIR,
YOU KNOW, TAX FILING.
GOTCHA.
SO STIMULUS CHECKS NOT TAXABLE.
WHAT ABOUT UNEMPLOYMENT
BENEFITS?
YEAH.
UNEMPLOYMENT BENEFITS ARE
TAXABLE, HEATHER, BOTH FOR THE
IRS AND FOR MINNESOTA PURPOSES.
UNEMPLOYMENT, YOU KNOW,
BENEFITS ARE TAXABLE FOR INCOME
TAX.
THEY'RE NOT SUBJECT TO THE
BUT THEY ARE SUBJECT TO INCOME
TAX.
AND I WOULD CAUTION PEOPLE IF
THEY DID NOT ELECT TO HAVE
WITHHOLDING TAKEN OUT OF THEIR
KNOW, HAVE AN EYE TOWARDS APRIL
15th AND MAYBE SOME TAX
PAYMENTS THAT YOU DO NEED TO
MAKE.
THAT MIGHT COME AS A SHOCK
TO A BUNCH OF PEOPLE.
DEFINITELY.
SHOCKS OUT THERE.
AND IN GENERAL THOSE PEOPLE
ARE GOING TO HAVE INCOMES THAT
ARE LOWER ANYWAY, RIGHT?
SO THAT THE BURDEN THERE
CORRECT, JASON.
BUT, STILL, NOBODY LIKES A
SURPRISE.
NOBODY LIKES A SURPRISE,
THAT'S RIGHT.
SAY, YOU'VE BEEN WORKING IN
ARIZONA SINCE OCTOBER BECAUSE
WE KNOW SOME PEOPLE WITH A
LEGAL RESIDENCE OF MINNESOTA
MAYBE LEFT THE STATE DURING THE
PANDEMIC TO GO SOMEWHERE ELSE.
HOW DOES THAT WORK?
DO YOU PAY ARIZONA TAXES,
MINNESOTA TAXES, WHAT DO YOU DO
THERE?
YEAH.
VERY COMPLEX QUESTION THAT
PROBABLY CAN'T BE ANSWERED IN A
SHORT TIME WE HAVE HERE TODAY.
SO I WOULD URGE EVERYBODY TO
WORK WITH THEIR CPA, THEIR TAX
PREPARER IN ASSESSING THEIR
SITUATION.
THAT'S A TOUGH ONE, YEAH.
DIFFERENT STATES HAVE
DIFFERENT THRESHOLDS FOR THE
NUMBER OF DAYS THAT WOULD
REQUIRE WAGES OR INCOME TO BE
SOURCED TO EACH STATE, AND
THOSE RULES ARE CHANGING, YOU
KNOW, EVERYDAY.
STATE LEGISLATORS ARE MEETING
AND CREATING NEW RULES AND LAWS
AROUND THAT.
SO DEFINITELY AN AREA THAT IS A
CONTINUING MOVING TARGET THAT
PEOPLE NEED TO WORK WITH THEIR
TAX ADVISERS ON, BUT WAGES
COULD OR SHOULD BE SOURCED TO
THOSE STATES, THEREFORE TAXES
WOULD NEED TO BE PAID TO OTHER
STATES.
MINNESOTANS GET A CREDIT FOR
THOSE TAXES PAID TO OTHER
STATES.
SO, YOU KNOW, IT'S NOT
INCREASING, OVERALL THEIR TAX
BURDEN IS JUST REDIRECTING
HERE'S ONE, ADAM, AND I'M
SURE YOU'RE GOING TO GET A
WHOLE BUNCH THIS YEAR, PEOPLE'S
HOME OFFICES WHICH COULD BE
ANOTHER ROOM IN THEIR HOUSE, IT
COULD BE THEIR DINING ROOM
TABLE.
CAN YOU DEDUCT THAT THIS YEAR?
BECAUSE WHAT A WEIRD YEAR.
DEFINITELY A WEIRD YEAR,
HEATHER, AND, YOU KNOW, FOR
THOSE PEOPLE WHO ARE EMPLOYEES
AND ARE RECEIVING A W-2,
MECHANISM TO TAKE A DEDUCTION
FOR HOME OFFICE EXPENSES.
THAT WAS SUSPENDED BACK IN 2017
WITH TAX REFORM.
AN INDEPENDENT CONTRACTOR, A
SELF-EMPLOYED INDIVIDUAL, IF
YOU DO HAVE A DEDICATED SPACE,
THERE IS THE OPPORTUNITY FOR
YOU TO CLAIM EITHER A
SIMPLIFIED DEDUCTION FOR YOUR
HOME OFFICE WHICH IS ABOUT $5
PER SQUARE FOOT, CAPPED AT
$1,500, OR YOU CAN GO THROUGH A
FAR DEEPER MORE COMPLEX
ANALYSIS AND CARVE OUT SOME OF
THE DEPRECIATION ON YOUR HOME,
CARVE OUT SOME OF YOUR REAL
ESTATE TAXES, MORTGAGE
INTEREST.
BUT YOU DO NEED TO WORK WITH A
CPA TAX PREPARER BECAUSE THERE
ARE IMPLICATIONS WHEN YOU SELL
YOUR HOME OF TAKING THAT
APPROACH.
GOING TO BE COMPLICATED THIS
YEAR.
ADAM GOEHRING WITH BAKER TILLY,
THANKS FOR JOINING US TODAY.
EARLIER WE TALKED ABOUT A