The Small Business Act of 2010 has just been approved by Congress with many benefits to small business owners and individuals. We received the article shown below from our accountant KDV- this is a good recap.
It might be a good time to discuss the benefits of this progam with your accountant. I look forward to any other info someone has about the Act- please post or pass on.
Article from KDV- Small Business Jobs Act
Small Business Jobs Act benefits more than just small businesses
The Small Business Jobs Act of 2010 (SBJA) has just been passed by Congress, and it benefits more than
just small businesses. It also provides tax-saving opportunities for larger businesses and individuals —
including small-business investors, the self-employed and employees saving for retirement.
Changes affecting businesses
Section 179 expensing.
the Internal Revenue Code Sec. 179 expensing election limit. For tax years beginning in 2010 and 2011, the
limit will now be $500,000, with a dollar-for-dollar phaseout starting when purchases for the year exceed $2
million.
SBJA also temporarily expands the definition of eligible property to include qualified leasehold-improvement,
restaurant and retail-improvement property. The maximum amount of such property that can be expensed is
$250,000.
SBJA helps small-business owners invest in their own businesses by increasingBonus depreciation.
property, generally if acquired in calendar year 2010. Businesses can recover the costs of qualifying
depreciable property more quickly by immediately deducting 50% of the cost. Bonus depreciation isn’t
subject to any asset purchase limits, so businesses ineligible for Sec. 179 expensing can take advantage of
it.
Property that qualifies for bonus depreciation includes tangible property with a recovery period of 20 years
or less, computer software purchased by the business, water utility property, and qualified leasehold
improvement property.
Another depreciation-related provision extends the special allowance for certainOther key changes.
Here are some additional changes businesses should be aware of:•
New five-year carryback of the general business credit,•
Increase in the start-up expenditures deduction,•
Shortening of the S corporation built-in gains period, and•
requirements and special depreciation rules.
Removal of cell phones from the definition of “listed property” that’s subject to tighter substantiationChanges affecting individuals
Exclusion on small business stock gains.
SBJA temporarily increases the qualified small business (QSB) stock gain exclusion. The exclusion will be
100% for stock acquired after SBJA’s enactment date (that is, the date the president signs it into law) and
before Jan. 1, 2011, that’s held for at least five years. Additionally, the act eliminates the alternative
minimum tax (AMT) preference item on such gain, making it tax free for AMT purposes as well.
To make investing in certain small businesses more attractive,Self-employment tax.
purposes any costs incurred in 2010 for health insurance for you and your spouse, dependents and children
age 26 or under.
If you’re self-employed, SBJA permits you to deduct for 2010 self-employment taxRoth 457(b) plans.
may allow your employer to start providing you the option to designate some or all of your contributions as
Roth contributions. The contributions won’t reduce your taxable income, but you won’t have to pay any tax
on qualified distributions.
If you’re a government employee who participates in a 457(b) plan, be aware that SBJA401(k), 403(b) or 457(b) rollovers to Roth accounts.
allow (but isn’t
The amount of the rollover would be includible in your taxable gross income — except to the extent it’s the
return of any after-tax contributions. If the rollover is made in 2010, you can elect to pay the tax over a twoyear
period in 2011 and 2012.
Under SBJA, your 401(k), 403(b) or 457(b) plan mayrequired to allow) you to roll any portion of your pretax account balance into a Roth account.How you can benefit
Whether or not you’re a small-business owner, you may be able to reap significant tax savings by taking
advantage of the opportunities SBJA offers. We’d be pleased to help you determine exactly how you can
benefit.
I hope you find this information beneficial. For more great information about our commercial design build and general contractor services as well as all of your commercial real estate and property needs, please contact us today
