Small Business Jobs Act of 2010
The Small Business Jobs Act of 2010 was signed by President Obama on September 27. Tax provisions include:
- Reinstates the 50% bonus depreciation for new assets placed in service during 2010 (this had expired after 2009; it will now be continued through 2010).
- Increases the maximum Section 179 expense election for equipment purchases from $250,000 to $500,000 for both 2010 and 2011.
- Allows the use of Section 179 expense elections for certain qualified real property expenditures.
- Increases the first year dollar cap for automobile depreciation by $8,000.
- Increases the allowable deduction for startup expenses from $5,000 to $10,000 (versus amortizing them over 15 years).
- For 2010 only, allows the deduction of health insurance costs for self-employed individuals when computing net earnings from self-employment.
- Removes cell phones from the listed property category.
- Requires increased 1099 reporting for payment of expenditures by rental property owners.
- Allows for rollover directly from 401(k), 403(b) and 457 plans to a designated Roth account.Several other provisions and numerous technical limitations are included in the Act.
Contact your local Yeo & Yeo tax professional if you have questions or want to talk about strategies for minimizing your taxes for 2010 and beyond.