Small Biz Tip: Taxes: Business Tax Breaks

Tips from March 10, 2010Are you collecting the maximum tax breaks from the stimulus law passed last year? Here are the 5 best business tax breaks. Bonus depreciation. Allows a business to deduct 50% of the cost of a new asset in the year it is placed in service. Section 179 expensing. A small business can elect to expense up to $250k of the cost of qualified assets. Net operating losses. Under the new law, most businesses can elect to carry back losses for up to 5 years, instead of the usual 2 years. Discharge of business debt. The stimulus law allows businesses to recognize discharge of indebtedness income over 5 years, rather than all in 2009. Exclusion of gain on the sale of qualified small business stock. Increased to 75% for any gain from a sale between Feb 09 and Jan 11. Daily Overview: Keep the 2009 stimulus law in mind when you are calculating your taxes this year.  Big thanks to... [Read Full Article]