On September 27, 2010, President Obama signed the Small Business Jobs Act of 2010.
In part, the Act:
- Doubles the Section 179 expensing limit for fixed assets placed in service to $500,000, phasing out at $2 million for tax years beginning in 2010 and 2011, and allows the expensing up to $250,000 of leasehold, retail and restaurant improvements
- Reinstates 50 percent bonus depreciation for qualifying property acquired and placed in service in 2010, and authorizes an increased first-year depreciation limit by $8,000 for passenger autos that are “qualified property”
- Doubles the allowable tax deduction for start-up expenditures to $10,000
- Removes cell phones from the definition of listed property
- Allows self-employed individuals to deduct health insurance costs in paying their 2010 self-employment tax
- Allows small businesses to carry back general business tax credits to offset their taxes from the previous five years and count those credits against their Alternative Minimum Tax (AMT) liability
- Requires information reporting for rental property expense payments
For a more detailed explanation of these new provisions, please call Gregory L. Gandy, CPA, or Michael E. McDevitt, CPA, at (719) 579-9090. Also, for a detailed review of this and many other tax law changes, e-mail Stephanie Johnson to R.S.V.P. for our November Entrepreneurial Corner on November 18, 2010.