CPAs and Advisors with a Growth Agenda

Small Business Jobs Act

Relief from Recordkeeping for Cell Phones

The  Small Business Jobs Act of 2010  (“Jobs Act”) included a provision that changed how tax law applies to an employee’s use of an employer-provided cell phone. The provision removed cell phones and other similar telecommunications equipment (“cell phones”), such as PDAs, Blackberrys, and smart phones, from the “listed property” classification for deduction and depreciation purposes. So, what does this mean for your business? Prior to the Jobs Act, a taxpayer could claim a deduction for cell phone expenses only if required substantiation tests were met. These included maintaining books and records of all business use of the cell phone. No deduction was allowed for this. Read More.

New Law Repeals Expansion of 1099 Reporting Requirements

As widely anticipated, President Obama signed into law on April 14th a bill to repeal expanded Form 1099 information reporting requirements for certain business payments and rental property expense payments. The Comprehensive 1099 Taxpayer Protection and Repayment of Exchange Subsidy Overpayments Act of 2011 specifically repeals: the requirement for businesses, charities, and governmental entities to report payments to companies for merchandise purchased in the aggregate of $600 or more (originally effective for 2012), the requirement for rental property owners to report expense payments in the aggregate of $600 or more (originally effective for 2011), and the requirement for businesses, charities,. Read More.

Deadline Approaches to Claim Some Small Business Jobs Act Tax Benefits

Businesses need to take note that some key provisions of the Small Business Jobs Act of 2010 (the Act) will expire by the end of the month. The Act expanded two income tax expensing provisions as an incentive to encourage businesses to purchase certain types of property. In order to take full advantage of these provisions for 2010 calendar tax years, qualified businesses will need to act quickly, placing property in service as soon as December 31, 2010. Bonus Depreciation Retroactive to January 1, 2010, the Act extended the 50-percent first-year bonus depreciation that previously expired at the end of 2009, giving businesses an important opportunity. Read More.

Small Business Jobs Act of 2010 Offers Tax Incentives for Businesses of All Sizes and Individuals

Table of Contents Incentives for All Businesses Small Business Incentives Retirement Savings Incentives for Individuals On September 27, 2010, President Obama signed into law the Small Business Jobs Act of 2010, or H.R. 5297 (hereafter, “the Act”). Though many of the Act’s provisions focus on small businesses , the new law also contains tax incentives that apply to all businesses as well as new retirement savings incentives for individuals . It is important to note that some of these provisions offer taxpayers a very small window of opportunity, requiring action before the end of the year to take advantage of the savings. INCENTIVES FOR ALL BUSINESSES The Act enhances and extends a number of tax incentives that were originally included in. Read More.

Are You Eligible for the New Small Employer Health Insurance Tax Credit?

Your business may be eligible for the new Small Business Health Care Tax Credit . The credit, which was part of The Patient Protection and Affordable Care Act , is retroactive to tax years beginning in 2010 and is, therefore, available for the full calendar year of 2010 (for calendar year taxpayers). Designed to encourage eligible small employers to offer health insurance coverage to their employees, the non-refundable credit is available to small employers that pay at least half the cost of single coverage for their employees. The credit is specifically targeted to help small businesses and tax-exempt organizations that primarily employ low and moderate income workers. The maximum credit amount is 35. Read More.