Small Business Incentives in the Tax Relief Act of 2010

For your reference, a JD Supra reading list: what lawyers are saying about small business incentives in the Tax Relief Act of 2010:

Small Business Investment Incentives (by Sanford Millar):

“Among the small business incentives in the 2010 Tax Relief Act (the
Act) signed into law last week by president Obama is a provision that
increases incentives to invest directly in small businesses. Section
760 Act amends section 1202 of the Internal Revenue Code (the Code).
The Code now provides for that if an investment is made in 2011 in
stock of a qualified small business and the stock is held for five (5)
years the gain is tax free…” Read more>>

Tax Relief Act of 2010 (by Armstrong Teasdale):

“One Hundred Percent Exclusion of Gain from the Sale of Small Business Stock. Under the Small Business Jobs Act of 2010, the gain from the sale of qualifying small business stock that is acquired after September 27, 2010 and prior to January 1, 2011 and held for more than five years is excluded from the income of a non-corporate taxpayer. The Tax Relief Act extends the exclusion for one more year, for stock acquired before January 1, 2012…” Read more>>

The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (by Duane Morris):

“Maximize net operating loss (NOL) carrybacks. A new law enacted last November makes it easier for most businesses to dig up immediate tax savings from NOLs by allowing them to be carried back to earlier years. This allows businesses that have incurred tax losses during the recent economic downturn to recover taxes paid in profitable prior years. In deciding whether to elect to carry back an NOL three, four or five tax years, taxpayers should assess whether the election will result in the largest tax refund…” Read more>>

President Signs Tax Relief, Unemployment Insurance Reauthorization and Jobs Creation Act of 2010 (by Luce Forward):

“Small Business Expensing. Under prior legislation, for taxable years beginning in 2010 and 2011, small businesses may elect to expense up to $500,000 of capital investment, with the phase out beginning at $2,000,000. The limits were scheduled to be lowered to $25,000 with a $200,000 limitation for 2012. Under the new law, for 2012, such amount is raised to $125,000, with a phase out threshold of $500,000 (both figures to be adjusted for inflation). A $25,000 maximum and $200,000 phase out threshold will apply for tax years beginning after 2012 and will not be adjusted for inflation…” Read more>>  

2010 Tax Relief Act brief (by Stephen Swarts):

“On the business side, many tax breaks that expired at the end of 2009 have been retroactively reinstated and extended through 2011. Among these, businesses may write off 100% of their equipment and machinery purchases, effective for property placed in service after September 8, 2010 and through December 31, 2011. For property placed in service in 2012, the new law provides for 50% additional first-year depreciation…” Read more>>

SZD Tax Alert: Tax Relief Act of 2010 passed by Congress (by Schottenstein Zox & Dunn):

“Payroll tax reduction During 2011, employees and self employed workers will receive a two-percentage point reduction in Social Security payroll tax, bringing the rate paid by employees down to 4.2 percent and the rate paid by self-employed individuals down to 10.4 percent…” Read more>>


Tax Relief Act of 2010: What Lawyers Are Saying

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