Oct 18

Written by: Stephen Stafford, J.D., LL.M.
10/18/2010 2:43 PM  RssIcon

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