Tax breaks for small business

Here are the new breaks signed into law, according to the SBA:

• Zero Capital Gains Taxes on Key Investments in Small Businesses
• Up to $500,000 Small Business Expensing Limit
• 100% Accelerated/Bonus Depreciation
• Tax Relief/Simplification for Cell Phone Deductions
• Increased Deduction for Entrepreneurs’ Start-Up Costs
• 5-Year Carryback of General Business Credits
• Limitations on Penalties for Errors in Tax Reporting
• General Business Credit Not Subject to Alternative Minimum Tax (AMT)
• New Health Care Tax Credits and Deductions — The Small Business Jobs Act allowed self-employed individuals to deduct 100 percent of insurance costs incurred in 2010 for themselves and their families.
• A New Tax Credit for Hiring Unemployed Workers

I’m most excited about the next-to-last item. It made no sense that I could not deduct the cost of health insurance when corporate America could.

Another take on the same new tax break info comes from AdvisorOne.

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