On September 27, 2010, the President Obama passed The Small Business Jobs Act of 2010.  The act consists of some important tax provisions that encourage investment and increase capital for a small business to drive economic recovery.  These provisions mentioned below are extended through January 1, 2012:

  • According to the act, the investors who invest their money into certain small businesses can exclude up to 100% of capital gain from selling the stock.
  • Eligible small businesses are now allowed to carry back general business credits five years instead of the previously established law for one year.
  • Those businesses which treat the cost of certain property as an expense rather than a capital expenditure will be eligible for expense deduction.
  • When calculating self-employment tax, some small business owners can deduct the cost of health insurance for themselves and their family.

The Small Business Jobs Act of 2010 gives small business owners an opportunity to utilize the deductions and help grow their businesses.  Along with numerous deductions, the act also increases the maximum amount for SBA loan programs from $2 million to $5 million.  Moreover, small business investors do not have to worry about paying taxes on up to 100% of the capital gain.

Take the advantage of the SBA 2010 today!! To know what deductions your business is eligible for, contact Garden State Payroll at 732-353-6803 or email us at info@gardenstatepayroll.com