Today I am going to talk about the Business Incentives in the New Tax Law. They are quite beneficial to the business entities.
1. Bonus Depreciation
The Tax Relief Act boosts 50% bonus depreciation to 100% for qualified investment made for period (Sep-8-2010 to Jan-1-2012). It also makes 50% bonus depreciation for period (Dec-31-2011 to Jan-1-2013).
2. Small Business Expensing
The 2010 Small Business Jobs Act increased the Code Sec. 179 dollar and investment limits to 500,000 and 2 million for tax years beginning in 2010 and 2011.
The 2010 Tax Relief Act provides for a 125,000 dollar limit and a 500,000 investment limit for tax year beginning in 2012 (sunsetting after Dec-31-2012)
3. Research Tax Credit
The 2010 Tax Relief Act renew the Research Tax Credit through Dec-31-2011.
4. Small Business Stock
The 2010 Small Business Jobs Act enhanced the exclusion of gain from qualified small business stock to non-corporate taxpayers. For stock acquired after Sep-27-2010 and before Jan-1-2011, the exclusion is 100%.
The 2010 Tax Relief Act extends the 100% exclusion for one more year, for stock acquired before Jan-1-2012.
5. Work Opportunity Tax Credit
The 2010 Tax Relief Act extends the WOTC for individuals who begin employment after Aug-31-2011 and before Jan-1-2012, but with some modifications.
PSQ
Sources: http://tax.cchgroup.com/downloads/files/pdfs/legislation/bush-taxcuts.pdf
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