Congress passes Small Business Act
Small businesses get some tax breaks in a new law just passed by Congress. The Small Business Jobs Act of 2010 extends 50% bonus depreciation for new equipment purchased during 2010. It increases for 2010 and 2011 the first-year expensing limit for new and used business equipment purchases to $500,000, and raises the phase-out limit on expensing to $2 million.
The law increases the deduction for business start-up expenses in 2010 from $5,000 to $10,000. The deduction phases out after expenditures exceed $60,000; that's up from the prior phase-out threshold of $50,000.
For 2010, self-employed taxpayers will be able to deduct the cost of their health insurance in computing self-employment taxes.
The new law also provides a $30 billion fund to encourage community banks to lend to small businesses.
For more information on tax deadlines that apply to you or your business, contact our office by phone at 408-879-9990 or by email at cpa@cpasllp.com. You can also visit our website www.cpasllp.com for more details.
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