No, I am not kidding. While it comes with bizarre terminology that only an accountant and a congressman can love, there were some positive tax changes for small businesses that were enacted in 2010 as a result of the Affordable Care Act and Small Business Jobs Act. These laws created new deductions and increased the opportunity to claim other deductions and credits for small businesses and the self-employed.
The highlights of what is impacted are as follows:
• Health Insurance Deduction for Self-Employed
• Small Business Tax Credit for Health Care
• General Business Credit for Employers
• Increased Expense and Depreciation Limits
• Business Vehicle Depreciation Change
• Special Bonus Depreciation
• Phase-Out of Paper Coupon System
Learn more from special web content created by the IRS at the following link: http://www.irs.gov/newsroom/article/0,,id=233824,00.html
Read it the next time you have a bout of insomnia. You will soon realize why your accountant is well worth the investment if only for interpreting the unintelligible.
Not every small business or self-employed individual may be in the position to take advantage of these changes. We recommend that you consult with your tax advisor or tax professional in order to maximize the impact these changes will have in your filing situation. They can assist you in timing and forecasting of your business decisions in 2011 to enable you to make the most of these changes for your business.