The Small Business Jobs Act of 2010, signed by President Obama on Sept. 27, includes a bevy of tax breaks for small business owners. Here are the highlights:
Higher expensing for
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 thephaseout rule jumps from $800,000 to $2 million, for tax years beginning in 2010 and 2011. Therefore, bigger businesses are now eligible for Section 179 deductions.
In addition, for tax years beginning in 2010 and 2011, up to $250,000 of qualified real property costs (for eligible buildings and improvements) can be deducted under Section 179. Before the new law, real property costs did not qualify for Section 179 deductions.