Articles
Tax Changes: Deducibility of Health Insurance
The Small Business Jobs Act has allowed business owners to deduct health insurance costs for themselves and their family.
Tax Changes: Small Business Jobs Act of 2010
The Small Business Jobs Act of 2010 made beneficial changes to the application of general business credits toward tax and AMT liability offsets. (P.L. 111-240)
General business credits of eligible small businesses for 2010 get five-year carryback. Generally, a business’s unused general business credits can be carried back to offset taxes paid in the previous year, and the remaining amount can be carried forward for 20 years to offset future tax liabilities. Under Small Business Jobs Act, for the first tax year of the taxpayer beginning in 2010, eligible small businesses can carry back unused general business credits for five years instead of just one. Eligible small businesses are sole proprietorships, partnerships and non-publicly traded corporations with $50 million or less in average annual gross receipts for the prior three years.
General business credits of eligible small businesses not subject to AMT for 2010. Under the AMT, taxpayers can generally only claim allowable general business credits against their regular tax liability, and only to the extent that their regular tax liability exceeds their AMT liability. A few credits, such as the credit for small business employee health insurance expenses, can be used to offset AMT liability. The Small Business Jobs Act allows eligible small businesses to use all types of general business credits to offset their AMT in tax years beginning in 2010. (Source for this information: © 2010 Thomson Reuters/RIA. All rights reserved.)
If you are unsure of how your general business credits can be used to offset your tax or AMT liability, contact your CPA.
Tax Changes: Temporary Exclusion of Tax on Gain From Small Business Stock
Small business owners are given temporary relief from tax on gains from sale of company stock as a result of the Small Business Jobs Act. 100% exclusion of gain from the sale of small business stock Ordinarily ,individuals can exclude 50% of their gain on the sale of...
Tax Changes: Start Up Expenses
Thinking about starting a new business? Changes in the tax law allow you to write off more of the start up expenses. Boosted deduction for start-up expenditures. The Small Business Jobs Act allows taxpayers to deduct up to $10,000 in trade or business start-up...
Tax Changes: Extension of 50% Bonus First Year Depreciation
The “Small Business Jobs Act of 2010” includes a number of important tax provisions for business. If you are planning on making capital expenditures, be sure to talk to your accountant about the following: Extension of 50% bonus first-year depreciation. Before the...
Tax Changes Regarding : Enhanced small business expensing
On September 27, President Obama signed into law the “Small Business Jobs Act of 2010” (P.L. 111-240) which includes a number of important tax provisions for business. As we talk to our small business clients about their tax planning, we are helping them take...
Why do I need a compiled financial statement?
Complied financial statements are a powerful tool for effective tax planning. Provided on a quarterly basis, these account recordings allow us to provide 1) precise income tax liability calculations, 2) accurate long-term tax planning, and 3) priority handling of your tax return. By placing your quarterly financial picture into our professional format, you will eliminate mad scrambles for end-of-year accounting information, and reduce the need to file an income tax extension. Also, compiling your financials after end-of-year does not allow us to influence your tax picture to ensure that you minimize your liabilities and eliminate surprises.
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