Small Business Tax Help: The IRS is cracking down on Small Business this year, watching every move for a slip up. But the dark cloud of added scrutiny has a silver lining. The IRS is allowing special Tax Deductions for Small Businesses.
New Small Business Tax Breaks: See if you apply for any of these new Small Business Tax Breaks.
Faster Write-Offs for Capital Expenditures
Usually, any investments a business makes are recovered through annual depreciation over the years. But now, most or all of your property and equipment investments can be written off on your 2009 Tax Returns.
An additional "Section 179" deduction allows small business to deduct up to $250,000 of the cost of machinery, equipment, vehicles, furniture, and other qualifying property used in 2009. Before, the limit was $133,000.
Claim these on IRS Form 4562, more details are in the form.
Expanded Net Operating Loss Carryback
Many small business had expenses exceeding their incomes for 2008. Now you can carry the losses back for up to give years instead of the usual two. That means if you were profitable in the past but lots big in 2008, you could get a special tax refund this year.
But act fast, the deadline to take advantage of this is Oct. 15, 2009.
Exclusion of Gain on the Sale of Certain Small Business Stock
Investors in small business stock can now exclude 75% of the gain upon sale of the stock. But the stock has to be acquired after Feb. 17, 2009 and before Jan. 1, 2011 and held for more than five years.
Estimated Tax Requirement Modified
According to the IRS, many individual small business taxpayers may be able to defer, until the end of the year, paying a larger part of their 2009 tax obligations. For 2009, eligible individuals can make quarterly estimated tax payments equal to 90 percent of their 2009 tax or 90 percent of their 2008 tax, whichever is less. More details are available in Publication 505.
The Deadline You only have a few months to take advantage of these deductions and save big on your taxes, double check with a CPA or tax relief professional to see if you qualify.
Have a Happy and Safe Memorial Day Weekend!