Tax Planning & Compliance Blog

2010 Small Business Jobs Act: How Small Businesses Will be Affected

The recently enacted 2010 Small Business Jobs Act includes an assortment of changes for small businesses. Listed below are several, but not all, of the tax breaks and incentives, as well as the offsets (revenues and raisers) of the new law. For more details on these changes, click here.

Tax Breaks and Incentives
- Enhanced small business expensing
- General business credits of eligible small businesses for 2010 allowed to be carried back five years
- General business credits of eligible small businesses in 2010 aren't subject to AMT
- S Corporation holding period
- Extension of 50% bonus first-year depreciation
- Special rule for long-term contract accounting 
- Boosted deduction for start-up expenditures
- Deductibility of health insurance for the purpose of calculating self-employment tax
- Cell phones removed from listed property category

Offsets (Revenue Raisers)
- Information reporting required for rental property expense payments
- Allow participants in governmental 457 plans to treat elective deferrals as Roth contributions
- Allow rollovers from elective deferral plans to designated Roth accounts

Click here for details on each of the tax breaks and incentives and the offsets (revenue raisers) of the 2010 Small Business Jobs Act.

For more details on the new legislation, please do not hesitate to contact a member of Skoda Minotti's Tax Planning & Preparation Group by calling (440) 449-6800.

Year-end Tax Moves for Individuals 

Year-end tax planning is especially complicated this year. Reason: As a general rule of thumb, individuals may try to accelerate deductions into the current year and defer income to the next year. But income tax rates are scheduled to increase in 2011. Furthermore, special tax reductions for long-term capital gains and dividends are scheduled to expire after 2010. Adding to the complexity, proposed legislation could modify the rules or extend tax breaks beyond this year.

Nevertheless, you can take certain logical steps at year-end. Here are several areas to consider.

Year-end Tax Moves for Business Owners 

Small-business owners may also benefit from certain tax strategies implemented at the end of the year. Of course, any new legislation may have a substantial impact. Accordingly, here are several ideas to consider.

Key Provisions of Wall Street Reform and Consumer Protection Act

The massive new financial reform law-officially titled the "Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010"-spans more than 2,300 pages. It includes significant changes for individuals, businesses and the financial community. Here are some of the key provisions that may affect consumers in the coming years.

Click here to read more. 

Guard Against Five 401(k) Mistakes  

The 401(k) plan is the most popular retirement plan in the land. So there is a good chance that you, or your spouse if you are married-or maybe even both of you-are eligible to participate in this type of plan. If that's the case, you may want to avoid mistakes that have plagued individuals in the past. Here are five common examples.

Aurum Capital Markets Summary

Please click here for a summary from Aurum Wealth Management Group on the performance of the major market indices through the end of August as well as a recap of the significant events influencing the markets.

To read this issue of Special Delivery in its entirety, click here.