Some Small Business Tax Changes For 2011
As with any client I've ever had when discussing taxes I always need to preface the conversation when they ask about stuff they can "look back" on and write off and say that after this time you have to think a head. There is no reason a small business owner isn't up to date with upcoming tax changes that could help them, or at least their tax man better be and let them know about it in January instead of waiting until next January. Sure they may be jerks and want to look like they pulled a genius idea out of their butt, but they aren't doing you many favors. It doesn't do you much good to plan backwards does it? Of course not. PLAN A HEAD. I don't care if you run a vending machine business, or a lemonade stand.
Even as you prepare your 2010 taxes, consider also looking ahead to make investments in equipment or other fixed assets before Dec. 31, 2011. The Small Business Jobs Act enacted in September doubles the Section 179 expense limitation to $500,000 for fully writing off fixed assets the year they were acquired. This specific tax break is applicable to 2010 and 2011 tax returns. Eligible investments include office furniture and equipment, machinery and computer software. Another provision from the same law allows 100 percent writeoffs of up to $250,000 of qualified real property such as leasehold improvements and some restaurant and retail improvements. more