Guest Post by Carol Olson, CPA - DRDA, LLC
Small Business Jobs Act of 2010
The Small Business Jobs Act of 2010 includes a number of important tax provisions for businesses large and small. While a few of the provisions take effect in 2011, the majority of the provisions are effective retroactively for the 2010 tax year. Following are some of the major provisions:
Bonus Depreciation. Bonus depreciation has been extended for 2010. You can deduct 50% of the cost of qualifying new business assets as well as depreciate the remaining basis of the asset. Bonus depreciation of up to $8,000 may be taken on passenger automobiles.
Section 179. The Section 179 deduction has been increased to $500,000 for property placed in service in 2010 and 2011. The $500,000 deduction is limited if a business acquires more than $2,000,000 of qualifying property. The Section 179 limit for large SUVs ($25,000) remains unchanged. Normally, Section 179 expensing only applies to tangible personal property used in a trade or business. For 2010 and 2011, a taxpayer may elect to treat up to $250,000 of qualified real property as Section 179 property. Qualified real property includes qualified leasehold improvement property, qualified restaurant property and qualified retail improvement property.