Tax breaks in the new small business bill

September 27, 2010

While Congress can't agree on individual tax law legislation, the House and Senate did send a small business bill to the White House. Obama signed the Small Business Jobs and Credit Act into law earlier today.

U.S. President Barack Obama signs the Small Business Jobs Act during a ceremony in the East Room of the White House in Washington, September 27, 2010. Obama signed a $30 billion small business lending bill into law on Monday, claiming a victory on economic policy for his fellow Democrats ahead of November congressional elections.    REUTERS/Jason Reed  (UNITED STATES - Tags: POLITICS BUSINESS)

Among the key tax provisions are:

  • Extension of bonus depreciation
  • Expanded Section 179 expensing
  • Increased start-up costs deduction
  • Five-year carryback for general business credits
  • A health insurance deduction that will reduce self-employment taxes

It's late, so rather than reinvent the wheel and elaborate on these and other tax provisions in the latest small business bill, I defer to folks who specialize in small business taxes … and who have already done the work!

You can find good detail on the small biz tax measures from:

Dean Zerbe, Forbes' Taxdude, who answers the question Small Business Bill — What Do Business Owners Need to Know to Cut Their Taxes?

Eva Rosenberg, the TaxMama.com writing this time for MarketWatch about New tax breaks for small businesses,

Paul Caron, the TaxProf Blog guru who tells us President Obama Signs Small Business Tax Bill, and

Joe Kristan who got a bit of a head start at Tax Update Blog with Extended bonus depreciation, $500K Section 179 deduction await President's signature.

Thanks to my tax blogging colleagues for making my life easier and letting me get to bed tonight at a more decent hour!

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Comments
  • I hope the bill will further encourage business newbies to start and grow their own businesses further.

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  • This bill contains some very key benefits for small business owners, it is my hope that congress will continue to stimulate the economy by focusing on ways to help small business people.

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