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Small business tax bill finally approved.

September 27, 2010

Today, September 27, 2010, is the day that President Obama signs “The Small Business Tax bill” that was approved by Congress on September 23. This bill includes $12 million in tax cuts for small businesses and a new $30 million Lending- fund to aid in credit availability for small firms. I’ve always believed that when the economy is at its worst people do one of two things; they either go back to school or they try their hand at opening a business. And during those times we find that the government aids them via education incentives as well as (for small businesses) these credits and tax cuts. Some key points to this new and improved bill are the following:

1)      Extension of the 50 percent bonus depreciation provision created in the American Recovery and Reinvestment Act through 2010.

2)      An increase in the Section 179 expensing limitations up to $500,000 and an increase in the phase out threshold amount to $2 million for 2010 and 2011.

3)      Allowing business owners to deduct the cost of health insurance for the purpose of computing 2010 self- employment taxes.

4)      Allowing general business credits of small businesses to be carried back for five years. These credits will not be subject to the alternative minimum tax.

5)      A 100 percent exclusion for capital gains from the sale of certain business stock.

6)      Removal of cellular telephones from listed property.

7)      An increase in the allowable deduction for startup business expenses.

My favorites so far are the health insurance deduction for self- employed taxes as that can be a nice dollar amount and of course for those folks that are starting their businesses this year the increase in the allowable deduction is nice so you don’t have to amortize the expenses (you do but not as much).

 At Gunwel, we specialize in helping you get every available write off for you and your business. Come in today for a free consultation or give us a call at 212-979-8360. You can also contact us via our website at www.gunwel.com. See you soon!

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