Tax Highlighter: Minnesota PPP Non-Conformity, Opportunity Zone Extensions and more
February 17, 2021
Our tax advisors are working hard to stay up-to-date on tax legislation and to help you understand how certain tax laws may impact your individual, business, estate, or gift taxes. Below are recent highlights to be aware of.
PPP Loans Remain Taxable in Minnesota
Minnesota is a nonconforming state which means PPP loan forgiveness is non-taxable on the federal return but remains taxable on the Minnesota return. We continue to watch this issue and will keep you informed if a change is made. It is unlikely MN legislators will pass new laws regarding PPP nontaxable by the filing deadlines. You are able to file an extension which extends the filing of your return but you will need to make your payments by April 15th. Reach out to your AEM tax advisor to discuss your options.
Claiming your Recovery Rebate Credit
Most individuals eligible for the Recovery Rebate Credit have already received the full amount in two rounds of payments, known as Economic Impact Payments. If you’re eligible for the credit, and either were not issued any Economic Impact Payments or were issued less than the full amounts, you must file a 2020 tax return to claim the Recovery Rebate Credit, even if you are not required to file a tax return for 2020. Find out more.
New IRS Notice Extends Several Opportunity Zone Deadlines
The IRS has granted further relief for qualified opportunity zone businesses and their investors. Those with gains all the way back to October 4, 2019 may still be able to invest and reap the QOZ benefits! Read more.
Employee Retention Credits Eligibility
Wondering if you are eligible for the Employee Retention Credits for 2020 and 2021? We have a visual resource to help you determine your eligibility. You can also watch our most recent PPP/ERC webinar. PPP/ERC Resources
If you have any questions about these or any other tax topics, please contact your AEM Tax Advisor.
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