Havig Tax & Consulting

06/23/2026

It's and today let's talk about the business mileage rate!

The IRS standard mileage rate for business use is 72.5 cents per mile in 2026, which is up from 70 centers per mile in 2025. That means every business mile you drive could potentially reduce your taxable income by 72.5 cents.

For example: If you drive 5,000 business miles this year, that's a potential deduction of $3,625.

06/22/2026

Before rushing into your next property exchange, ask yourself if you're truly chasing another investment or if you're actually ready for the simplicity and freedom of a life beyond active real estate management.

Before rushing into your next property exchange, ask yourself if you want another investment or the freedom of a life beyond real estate management.

06/22/2026

We’ve refreshed DoBusiness.MN.gov to make doing business in Minnesota even easier. From startup guidance to expansion resources, you can now find everything you need in just a few clicks!

06/22/2026

What is pass-through income?

Pass-through income is business income that “passes through” the business directly to the owner’s personal tax return. So, instead of the business paying federal income tax itself, the owner reports the income on their personal tax return.

This commonly applies to:
• sole proprietorships
• single-member LLCs
• partnerships
• S Corporations

For example: if your business earns a profit, that income flows through to your individual tax return, even if you leave the money in the business bank account.

Pass-through income can also qualify for certain tax benefits, including the Qualified Business Income (QBI) deduction in some situations.

Understanding how your business is taxed matters because entity structure can affect:
• self-employment taxes
• payroll requirements
• tax planning opportunities
• estimated taxes
• overall cash flow

Good tax planning starts with understanding how the money actually flows through your business.

06/19/2026

Minnesota reports job growth from March to May. The unemployment rate in Minnesota went down one-tenth of a percentage point to 4.4% in May, according to DEED data.

The latest data shows improved job growth after the state reported increased unemployment and job losses earlier in the year.

06/18/2026

Are You Taking Advantage of a Health Savings Account (HSA)? There's a reason why they call the HSA one of the best ways to save money on both taxes and for healthcare expenses!

Whether you're self-employed or covered through an employer, an HSA can help lower taxes while building savings for future medical costs. To qualify, you must be enrolled in an eligible High Deductible Health Plan. HSAs offer a unique triple tax advantage:

▪ Contributions may be tax-deductible.
▪ Earnings and investment growth are tax-free.
▪ Withdrawals for qualified medical expenses are tax-free.

For 2026, contribution limits are $4,400 for self-only coverage and $8,750 for family coverage. Individuals age 55 and older can contribute an additional $1,000 catch-up contribution.

Unlike Flexible Spending Accounts (FSAs), HSA funds roll over from year to year and remain yours even if you change jobs, switch insurance plans, or retire.

Many people also use HSAs as a long-term savings tool by investing their balances and allowing them to grow tax-free for future healthcare expenses.

If you're eligible, an HSA may be a smart way to reduce taxes, prepare for medical costs, and strengthen your overall financial plan.

06/17/2026

DEED's Small Business Digital Toolbox brings together practical resources to support every stage of your business journey. Explore our resources to find the right support for your small business journey!

🚀 5 Steps to Start a Business in Minnesota: https://bit.ly/43UxVk1
🤝 Small Business Support Network: https://bit.ly/4dEolrR
💲 Potential funding opportunities: https://bit.ly/4vBR9qt

🔗 Learn more about the toolbox: https://bit.ly/45MFmuZ

06/17/2026

A letter to the IRS cites erroneous notices, late guidance, and practitioner confusion. It also calls for clearer rules and system changes.

06/16/2026

It's ! The tax filing deadline for S Corporation's that filed an extension is on September 15th. That might seem far off, but it'll creep up on you pretty quickly!

S Corporations are a popular choice for small to mid-sized businesses because of their tax advantages and limited liability protection. One of the main benefits of an S Corp is that it is a pass-through entity for tax purposes. This means that the business itself does not pay federal income taxes. Instead, the income, deductions, and credits flow through to the individual shareholders' personal tax returns.

06/15/2026

Let's talk about one of our favorite tax strategies: Cost Segregation.

Cost segregation involves dissecting a rental property into its individual components, enabling an accelerated depreciation process. This approach generates increased paper losses for the taxpayer. For instance, a residential rental property (excluding the land) typically undergoes a 27.5-year depreciation period. By implementing this strategy, you can allocate depreciation timelines of 5, 7, or 15 years to specific building components. Leveraging the 'bonus depreciation' strategy further accelerates depreciation, resulting in substantial write-offs during the present tax year.