Newsletter 2010
Newsletter 2010
Businesses
Businesses
Print Full ArticleLast Reviewed: Jan 2011
Last Modified: Jan 2011
Relief for Business Filers.
Purchasing Incentives. Businesses will continue to benefit from strong purchasing incentives. For 2010 the Section 179 expense deduction is available for new and used equipment and other asset purchases up to $500,000 with an overall purchase limit of $2 million before limitations apply. Special bonus depreciation is available for items purchased new. There is a 50% limit for purchases up to September 8, 2010. Purchases after this date qualify for a 100% limit. Nice timing here for the Granite Point Tax Group!
Health Insurance Credit. Small businesses that pay more than 50% of health insurance expenses for employees will be able to take a credit of up to 35% of the health insurance costs. This credit is for businesses having less than 25 full time employees and average wages of less than $50,000.
Hiring Incentives. The HIRE Act gives a payroll tax holiday for employers that hire workers who were employed less than 40 hours in the 60 days prior to their employment. The hiring employer is not required to pay its share of FICA taxes (6.2 % of wages) for the employee. There is also a $1,000 credit available if the employee is retained for 52 consecutive weeks. If the payroll tax was mistakenly paid during 2010 for a qualifying employee it can be returned by filing amended payroll tax returns.
Self Employed Health Insurance Offsets SE Tax. For Schedule C or F filers that pay health insurance for themselves or family members in 2010 the deduction for this expense can be used to offset self-employment tax.
Startup Expense Deduction Increases. The deduction available for the startup expenses of a new business increases to $10,000 for 2010.
