Thursday, May 27, 2010

Recent Tax Law Changes that Might Affect your Business

Our recent RDTC Tax Help Blog entry discusses recent tax law changes that might affect your business. To learn more about these new changes that have been put in to place in the past year, you can read a segment of the entry below, but be sure to read the full text at the RDTC Tax Help Blog.

W-2 Changes

Starting next year, employers will need to make an adjustment to their employees W-2 Forms. Due to the recent health care reform package, employers are now required to list the value of provided health insurance plans on employees’ W-2 Forms.

New Business Expenses

When a new business opens, the owner is allowed to take advantage of first year expense deductions on all business property up to a certain amount. In 2009, the limit was $250,000 but in 2010 the amount was drastically reduced to $134,000. This limit is also expected to drop again in 2011— to only $25,000.

Capital Gains Opportunity

2010 could be the last year for thousands of business owners to benefit from low capital gains tax rates. Currently, the rates are as low as 0% on the sale of assets held longer than one year for self-employed taxpayers in lower income brackets. In 2011, these capital gains rates will increase to align with income tax rates, which can be as high as 35%.

Charitable Property Deductions

In 2008 and 2009, there were temporary tax laws that provided enhanced charitable deductions to business owners who donated items such as computer equipment or office supplies to qualifying charities. Unfortunately, these enhanced deductions were not extended into 2010.

Blog Archive