Small Business Jobs Act: What’s Important to You?

Here’s what JD Supra lawyers and law firms have written to help you make sense of the Small Business Jobs Act of 2010. The commentary and analysis covers new tax breaks for small businesses, changes in Small Business Administration loans, new business credit calculations, rules for employer-provided cell phones, and more:

Congress Enacts 2010 Small Business Jobs Act (by Sheppard Mullin):

“The ‘2010 Small Business Jobs Act’ includes an assortment of tax breaks and incentives for small businesses (as well as a few revenue raisers). Continue reading for a summary of some of the tax breaks and incentives provided by the act.” Includes reference to S corporation “built-in gains,” sale of small business stock, carry back of business credit, and more… Read on»

President Signs Small Business Jobs Act of 2010 (by Luce Forward):

“Under current law, general business credits generally may only be carried back one year and carried forward 20 years. The Act would allow small businesses to carry back general business credits up to five years. An eligible small business is a corporation or a partnership whose gross receipts average less than $5 million over a 3-year period. This provision would be effective for general business credits after December 31, 2009…” Read on»

Small Business Jobs Act of 2010 Provides Targeted Tax Incentives for Businesses (by Manatt Phelps):

“The Act increases the amount of qualified business start-up expenditures that a taxpayer may elect to deduct from $5,000 to $10,000 for tax years beginning in 2010. These deductions generally phase out for expenditures above $50,000. The Act increases the deduction phaseout threshold so that the $10,000 is reduced, but not below zero, by the amount by which the cumulative cost of qualified business start-up expenses exceeds $60,000…” Read on»

The Small Business Jobs Act and Your Small Business (by D.J. Marcus Law Firm):

“There are eight small business tax credits included in the Act. The first cuts the capital gains rate on certain small business investments to 0%. The second increases and extends the ability to immediately expense capital investments. The third extends 50% bonus depreciation created in the Recovery Act. The fourth is a deduction for self-employed health benefits. The fifth allows an easier deduction of business cell phone plans. The sixth creates a temporary increase in the deduction that entrepreneurs can claim for startup expenses from $5000 to $10,000. The seventh allows small businesses to carry back general business expense credits for up to five years. And the final limits penalties for reporting errors…” Read on»

Small Business Jobs Act of 2010 (by Armstrong Teasdale):

“The Act allows taxpayers to deduct up to $10,000 in trade or business start-up expenditures for 2010. The amount that a business can deduct is reduced by the amount by which startup expenditures exceed $60,000. Previously, the limit of these deductions was capped at $5,000, subject to a $50,000 phase-out threshold…” Read on»

Small Business Jobs Act of 2010 – Key Tax Incentive Provisions (by Morrison & Foerster):

“The Act includes $12 billion in tax cuts aimed at small businesses, provides incentives to help small businesses grow, and expands lending to small businesses. However, because many of the Act’s provisions are (i) temporary changes to the federal tax rules and (ii) aimed at certain taxpayers, many people may find this Act to be of limited use…” Read on»

Small Business Jobs Act of 2010 (by Green & Seifter):

“The new law, however, is not all positive news for certain taxpayers. For example, one of the more controversial provisions will require individuals receiving rental income from real property to file information returns with the IRS and to service providers reporting payments of $600 or more during the year for rental property expenses…” Read on»

The Small Business Jobs Act of 2010 – Loan Benefits to Small Businesses (by Brad Hamilton, Jones & Keller):

” With funds provided in the Jobs Act, the SBA is funding new Recovery loans and clearing out 1,400 applications in the loan queue by businesses requesting more than $730 million in loans. The extension provided by the Jobs Act provides the capacity to support $14 billion in new loans to small businesses…” Read on»

New Opportunities for In-Plan Roth Conversions (by Venable LLP):

“The Act changes the rules for 401(k) and 403(b) plans (and 45 (b) plans in 2011) to permit in-plan Roth conversions. An in-plan conversion is accomplished through a direct rollover of amounts from a non-Roth account to a Roth account within the plan, instead of a rollover to a Roth IRA. The in-plan Roth conversion provision is optional and applies to plans that allow participants to designate contributions as Roth contributions. This new rule is effective now for employees who are eligible to receive a plan distribution…” Read on»

Highlights of the Small Business Jobs Act for Investors and Entrepreneurs (by TroyGould):

“The Act also relaxes the tax rules for employer-provided cell phones, effective for 2010 and thereafter by removing cell phones and similar devices from the definition of so-called “listed property.” While this change does not eliminate all substantiation requirements for employer-provided cell phones, this means that the heightened substantiation requirements and special depreciation limitations for listed property will no longer apply to cell phones…” Read on»

Small Business Jobs Act to Simplify Taxation of Cell Phone Usage (by McDermott Will & Emery):

“Section 2043 of the act removes cellular telephones and similar telecommunications equipment from the Code’s definition of “listed property.” Therefore, cell phones are no longer subject to the Code’s onerous substantiation requirements and special depreciation rules for listed property. According to the Senate Committee on Finance’s summary, this provision is estimated to cost $410 million over 10 years…” Read on»

Small Business Jobs Act (by Sands Anderson):

“The Act’s title of “small business” is somewhat of a misnomer. Its provisions have a significant impact on businesses of all sizes, not simply small ones. In addition, the new law includes some retirement savings incentives for individuals and other provisions unrelated to small businesses jobs creation…” Read on»

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