$12 Billion in Tax Breaks!! (Congress passes the Small Business Jobs Act today)

September 24, 2010 by Mike Verville

After spending most of the 3rd quarter arguing and negotiating, Congress has passed the Small Business Jobs Act of 2010.  The Senate passed the measure on September 16, 2010.  The House passed the legislation today.  The emphasis of the new law is to increase lending to small businesses and create incentives for small business investment.

What does this mean to you?  Below are a few highlights of the the new law:

  • Extends bonus depreciation
  • Extends and doubles Code 179 expensing
  • Provides for 100% gain exclusion for qualified small business stock
  • Relaxes the S corp built-in gain conversion rules
  • Allows five-year carrybacks of the general business credit for qualified taxpayers
  • Removes cell phones from the listed property rules
  • Enhances the deduction for start-up expenses
  • Allows as self-employment income tax deduction for 2010 health care expenses

For a more in depth look at the Small Business Jobs Act of 2010, I have attached a link to CCH Tax Briefing.  If you would like to schedule a meeting with Wallace Neumann & Verville, LLP to go over how this new law may benefit your business please feel free to leave a comment or click on my link and send me an email.

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