Bookkeeping, Taxes & Websites
Another provision of the Small Business Jobs Act of 2010 removes cell phones from listed property so their cost can be deducted or depreciated like other business property, without onerous record-keeping requirements.
This is good new for small business owners who probably were not meeting the requirements of the law anyway and even better news for those that were doing the paperwork. It is nice to see any small steps toward making it easier to have a small business in America.
Another New Tax law change that benefits small business is the Small Business Health Care Tax Credit which takes effect now.
In simple terms this will allow some small businesses who pay for health insurance for their employees to save on taxes. While not a benefit to all small businesses it will help some and you should know about it.
Continue reading “Small Business Health Care Tax Credit”The Bad News is that the IRS is requiring businesses that could previously make Federal Tax Deposits by coupon to now use other methods.
The Good News – for those that find the web based and other systems too complicated and time consuming – is that you can make your deposits by telephone.
Continue reading “Have you been using Tax Deposit Coupons – Form 8109?”The burden placed on small businesses and start-ups just keeps getting higher and higher.
Beginning in 2012 businesses will have to issue 1099 tax forms not just to contract workers but to any individual or corporation from which they buy more than $600 in goods or services in a tax year. These changes will cause businesses to have to track many more of their transactions and issue many more forms – if they stand.
This will hugely increase the number of 1099s issued each year and massively increase the paperwork required to track these transactions because it adds both corporations and goods.
Under this new law you will be required to issue a 1099 to companies such as Costco and Smart & Final, and all other vendors for items purchased for resale.
This provision is beginning to be noticed by more and more people in the small business community and will hopefully be reconsidered.
Good news for business owners who bought equipment in 2010 or want to buy new equipment in 2011 and want to expense it fast. The Sec 179 limit was increased to 500K for 2010 and 2011 by the The Small Business Jobs Act of 2010. This can really help defer taxes for businesses that are otherwise profitable even though they spent on depreciable equipment.
Here is what the IRS said about the new law:
Continue reading “First year depreciation dedution increased to 500K”Some people who are affected by the last minute tax law changes or who itemize deductions will have to wait until mid to late February to file to give the IRS time to adjust.
Here is the list of areas with changes that will require waiting:
Continue reading “Taxpayers affected by late tax breaks should wait to file”A new law change effective for 2010 will allow deduction of Health Insurance Premiums from Self Employment (SE) Tax liability as well as Income Tax liability. Small business owners have been able to reduce their income tax liability previously but have still been hit with 15.3% SE Tax on net income and no way to reduce it.
Continue reading “Health Insurance Deduction now reduces taxes even more.”