Overview of New Tax Law - Business (Jan-23-2011, 85 days left)

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