House Bill Offers Tax Relief To Small Businesses
from the gimme-a-break dept
Continuing gov’t efforts to try to boost the economy are creating some additional tax breaks for entrepreneurs and small businesses. Just last week, the Small Business and Infrastructure Jobs Tax Act passed in the House and is now on its way to the Senate — though the progress of the bill will be held up until after the Easter break in Congress. But so far, this $14 billion piece of legislation (aka H R 4849) aims to help small companies with a few tax exemptions and deductions (as well as a bunch of other provisions). Here are some highlights:
100% exclusion for capital gains on qualifying small business stock acquired after Mar. 15, 2010 and before Jan. 1, 2011. New limits to the penalty for failing to disclose certain reportable transactions. (avoid the Code Sec. 6707A penalty, folks!) Higher tax deductions allowed for business start-up expenditures — increased from $5,000 to $20,000. At the same time, the threshold amount for reducing the limit will be increased from $50,000 to $75,000.
The Senate is also expected to try to increase the exports from small businesses with incentives and to improve loan availability from the Small Business Administration. But we’ll have to wait a bit to see what the actual law will be when it’s passed.
Filed Under: bill, congress, sba, small business, taxes
