Oct 18

Written by: Stephen Stafford, J.D., LL.M.
10/18/2010 9:57 AM  RssIcon

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.

The blog entries to follow summarize the key provisions of these tax breaks and incentives, and address whether the provisions apply immediately, retroactively or prospectively.

To read the entire blog posting, click on the link below.

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