Frank DiPaola, EA
Tax Accountant
Tax Form Processing LLC FOR THE TAXPAYERSM www.TaxFormProcessing.com 2400 N Forsyth Road Suite 101 Orlando, FL 32807-6445 Why You Need an Enrolled Agent?
Small Business Jobs Act of 2010
On September 28, 2010, President Obama signed into law the "Small Business Jobs Act of 2010 (H.R. 5297)." This tax act contains a number of business tax incentives. Here are the most popular changes in the tax act:
50% Bonus Depreciation is extended to tax years 2010 and 2011
For tax years 2010 & 2011, Section 179 expensing is increased from $250,000 to $500,000 and the phase-out now begins at $2,000,000 instead of $800,000
For tax year 2010 only, the start-up expense deduction has been increased from $5,000 to $10,000 and the phase-out threshold has increased from $50,000 to $60,000
Beginning with tax year 2010, self-employed individuals can now deduct the cost of their health insurance when calculating net earnings from self-employment for purposes of self-employment taxes
Beginning with tax year 2010, cell phones and other similar personal communication devices are no longer considered "listed property" under Internal Revenue Code Section 280F, which removes the strict substantiation requirements of use
100% of gain on Qualified Small Business Stock under Internal Revenue Code Section 1202 can be excluded if the stock is acquired after September 28, 2010 and before January 1, 2011
Effective beginning September 28, 2010, pre-tax account balances of 401(k), 403(b), and 457(b) plans can be rolled over to a Roth IRA. The rollover amounts are taxable, but there is no penalty. The rollover amounts can then be included ratably in income in equal amounts in tax years 2011 and 2012, unless the taxpayer elects to report the entire rollover amount in 2010 income
Beginning in 2011, Section 457(b) plans allow participants to contribute deferred amounts to designated Roth IRA's
Beginning with tax year 2011, individuals receiving rental income from real property must file information returns (Forms 1099-MISC & Form 1096) with the IRS and to service providers who are paid $600 or more during the year for rental expenses
Beginning with tax year 2010, General Business Credits now have a 5-year carryback
S-corporation Built-In Gains rules have been relaxed
Beginning January 1, 2011, penalties for failure-to-file information returns are increased
View the Entire Act (Tax Bill) Passed By U.S. Congress
Copyright © 1996 - 2012 Tax Form Processing LLC. All Rights Reserved. Home | Privacy Policy | Legal Disclaimer | Contact Us | Site Map Last Revised December 30, 2011
