New Tax Breaks- And What They Mean for You!

The Small Business Jobs Act of 2010 was enacted this past week. Learn what this means for you!

The IRS Pays your Cell Phone Bill: Remember the hell that was logging personal use of work cell phones, PDAs, or "simular equipment"? According to the new Small Business Jobs Act of 2010, this is no longer a requirement.

The New Depreciation This new rule for depreciation will definitely keep more cash in your pockets if you use it right.

First, you smaller businesses have the potential to deduct up to 10% of the cost of up to $5000,000 of new or used equipment.

But Wait, There's More: "Bonus" depreciation is available to any business of any size. For 2010 and 2011, this new rule allows for immediate write-offs for up to half the remaining cost of qualified new (but not used) equipment.

Bonus depreciation may also be used to claim a refund if a firm is losing money, whereas Section 179 deductions help only to reduce taxable income.

Tax-Free 401 (k): You can now transfer 401 (k) savings into Roth 401 (k) plans. You will have to pay taxes on the transfer, but the Roth accounts will allow tax-fee withdrawals along with other benefits up until you've withdrawn all your regular contribution. Always consult with a professional or your company's benefits specialists before making a move!

Bad News for Landlords: With new laws you have to take the bad with the good. This law adds a requirement for landlords. Beginning next year, most recipients of rental income must prepare IRS 1099 information returns if they pay a service provider $600 or more a year.

This means if your hire groundskeepers, plumbers, and other workers you must provide 1099 forms stating the payments to the workers and the IRS. Workers must be of legal age to work with social security numbers.