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8 tax ‘presents’ in new small business law

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in Small Business Tax,Small Business Tax Deduction Strategies

After a late flurry of activity in Congress, President Obama inked the new Small Business Jobs Act on Sept. 27. This new legislation provides a bushel of new tax goodies that can benefit small business owners this holiday season. Here are eight ways to cash in on the tax breaks from Uncle Sam.     

1. Ramp up Section 179 purchases. For tax years beginning in 2010 and 2011, your business can immediately write off up to $500,000 of qualifying assets (including purchased software). The new $500,000 maximum allowance doubles the previous $250,000 maximum deduction.

More good news: The threshold for the Section 179 deduction phaseout rule jumps from $800,000 to $2 million, for tax years beginning in 2010 and 2011. 

Strategy: Maximize this year’s deduction. When appropriate, purchase as much qualified property as your business needs.

Generally, tangible business property such as equipment, computers and furniture qualifies for the...(register to read more)

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