Tips from March 10, 2010
Are you collecting the maximum tax breaks from the stimulus law passed last year? Here are the 5 best business tax breaks.
- Bonus depreciation. Allows a business to deduct 50% of the cost of a new asset in the year it is placed in service.
- Section 179 expensing. A small business can elect to expense up to $250k of the cost of qualified assets.
- Net
operating losses. Under the new law, most businesses can elect to carry
back losses for up to 5 years, instead of the usual 2 years.
- Discharge
of business debt. The stimulus law allows businesses to recognize
discharge of indebtedness income over 5 years, rather than all in 2009.
- Exclusion
of gain on the sale of qualified small business stock. Increased to 75%
for any gain from a sale between Feb 09 and Jan 11.
Daily Overview: Keep the 2009 stimulus law in mind when you are calculating your taxes this year.
Big thanks to Kyle Durand for his excellent tax advice this week and help in writing today's tips. Need legal advice? Visit Kyle Durand at www.entrepreneurialadvocate.com and www.preceptlaw.com.
We post these small business tips to our employee's Twitter account each day, Monday through Friday. This is a reposting of those tips.
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