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.
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