Brown & Streza Blog
Author: Stephen Stafford, J.D., LL.M. Created: 10/18/2010 9:38 AM
Stephen Stafford blog
By Stephen Stafford on 1/27/2012 2:57 PM
California employers should be aware that a new law (California’s Wage Theft Prevention Act of 2011 codified as Labor Code Section 2810.5) went into effect on January 1, 2012 that requires California employers to provide all new nonexempt hires with written notice of specific wage information at the time of hire, including:

• The employee's rate or rates of pay (including overtime rates), and whether the employee is paid hourly, by the shift, by the day, by the week, by salary, by piece, by commission, or otherwise. • Any allowances claimed as part of the minimum wage (i.e., allowances for meals or lodging). • The regular payday. • The name of the employer, including any D/B/A names the employer uses. • The physical address of the employer's main office or principal place of business, and a mailing address if it is different. • The employer's telephone number. • The name, address, and telephone number of the employer's workers' compensation insurance carrier. • Any other information that the Labor Commissioner deems necessary.

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By Stephen Stafford on 10/19/2010 9:05 AM

The Small Business Jobs Act of 2010 creates a special rule that allows self-employed individuals to deduct health insurance costs incurred in 2010 for determining net earnings from self-employment for the purposes of calculating the tax on self-employment income.

To see the entire blog and read about some of the Act’s additional tax breaks for entrepreneurs and small businesses, click on the link below.

Tax Breaks for Entrepreneurs and Small Businesses in Small Business Jobs Act of 2010.pdf

By Stephen Stafford on 10/18/2010 3:18 PM

The Small Business Jobs Act of 2010 removes cell phones and similar telecommunications equipment from the definition of “listed property.” Consequently, for tax years beginning after December 31, 2009, the heightened substantiation requirements and special depreciation rules that apply to listed property no longer apply to cell phones. This makes it easier for almost all small businesses to deduct or expense the use of cell phones.

To see the entire blog and read about some of the Act’s additional tax breaks for entrepreneurs and small businesses, click on the link below.

Tax Breaks for Entrepreneurs and Small Businesses in Small Business Jobs Act of 2010.pdf

By Stephen Stafford on 10/18/2010 3:13 PM
Under Internal Revenue Code Section 280F, first-year depreciation deductions for passenger autos, light trucks and vans are subject to dollar limits that are annually adjusted for inflation. For 2010, the dollar limit cap for passenger autos is $3,060, and $3,160 for light trucks and vans. The Small Business Jobs Act of 2010, however, increases the first-year depreciation limit by $8,000. Therefore, the maximum depreciation deduction for a passenger auto that is put into use in 2010 just increased from $3,060 to $11,060 (i.e., this deduction is more than tripled in 2010). If the vehicle is a light truck or van, the maximum first-year depreciation just increased from $3,160 to $11,160.

To see the entire blog and read about some of the Act’s additional tax breaks for entrepreneurs and small businesses, click on the link below.

Tax Breaks for Entrepreneurs and Small Businesses in Small Business Jobs Act of 2010.pdf

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By Stephen Stafford on 10/18/2010 3:06 PM
In order to help small businesses quickly recover the cost of certain qualifying property - generally, machinery, equipment and certain software - small business taxpayers had, subject to Internal Revenue Code Section 179 limitations, been able to elect to write off the cost of some or all of these expenses in the year of acquisition in lieu of recovering these costs over time through depreciation. The Small Business Jobs Act of 2010 encourages capital investments by allowing for faster cost recovery of business property, including certain qualified real property, and extends bonus first-year depreciation through 2010.

Section 179 Expensing Increased to $500,000, but only for 2010 and 2011

For tax years beginning in 2010 and 2011, the Act increases the Section 179 limit from $250,000 to $500,000, and the investment ceiling/phase-out threshold from $800,000 to $2,000,000. These expensing changes will create a windfall for those businesses that have already placed in service Section 179 eligible...
By Stephen Stafford on 10/18/2010 2:43 PM
For entrepreneurs that started a new business or who are planning to start a new business in 2010, the Small Business Jobs Act of 2010 provides an increased deduction for start-up expenditures.

For tax years beginning in 2010 only, the Act increases the amount of start-up expenditures a taxpayer can elect to deduct from $5,000 to $10,000. The Act also increased the deduction phase-out threshold from $50,000 to $60,000 (i.e., the $10,000 amount is reduced, but not below zero, by the amount in which the cumulative start-up expenditures exceeds $60,000). The remainder of the start-up expenditures can be claimed as a deduction over the 180 month period beginning with the month the active trade or business began.

To see the entire blog and read about some of the Act’s additional tax breaks for entrepreneurs and small businesses, click on the link below.

Tax Breaks for Entrepreneurs and Small Businesses in Small Business Jobs Act of 2010.pdf

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By Stephen Stafford on 10/18/2010 9:57 AM
President Obama recently signed into law H.R. 5297, the Small Business Lending Funding Act. The tax title of this bill, the “Small Business Jobs Act of 2010” (the Act, P.L. 111-240), contains a number of significant tax provisions affecting individuals and businesses. The Act includes approximately $12 billion in tax cuts - most notably an increase in asset expensing and a continuation of bonus depreciation - and attempts to ease credit lending to small businesses.

This blog entry highlights some of the Act’s tax breaks and incentives that may provide an immediate benefit to entrepreneurs and small businesses, including:

Increased Deduction for Start-up Expenses;

Increased Expensing Deductions plus Extension of Bonus Depreciation;

First-Year Depreciation for Autos and Trucks Increased by $8,000;

Cell Phones Removed from Definition of “Listed Property;” and

Deduction for the cost of Health Insurance in Calculating Self Employment Taxes.

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