Two Bonus Depreciation Deductions for One Expenditure

Under IRS regulations, businesses that trade in machinery or equipment for which they claimed bonus depreciation may qualify for another bonus depreciation deduction on the remaining depreciable basis if they swap for like-kind property that also is eligible for bonus depreciation. In effect, the business gets two bonus depreciation deductions...

FUTA Surtax is No Longer in Effect

Beginning July 1, 2011, the 0.2% federal unemployment tax (FUTA) surtax is no longer in effect. Thus, the FUTA tax rate, before consideration of state unemployment tax credits, is now 6.0%. Employers need to separately track FUTA taxable wages paid before July 1, 2011, and FUTA taxable wages paid after...

IRS Announces Business Mileage Allowance Increase

IRS has announced that the optional mileage allowance for owned or leased autos (including vans, pickups or panel trucks) will increase 4.5¢ from 51¢ to 55.5¢ per mile for business travel from July 1, 2011 to Dec. 31, 2011 to better reflect the real cost of operating an auto in...

Deductions for the 2010 Small Business Jobs Act

The Small Business Jobs Act doubled the amount that could be written off for 2010 to $10,000 and increased the phaseout threshold from $50,000 to $60,000. It is important to note that this increased deduction is temporary, and only applies to tax years beginning in 2010. Start-up expenses include, with...

What Is The 2010 Small Business Jobs Act?

If you’ve recently started a business, or if you’re in the process of starting one, you should be aware of a tax law change that could make a big difference in your tax bill. The 2010 Small Business Jobs Act doubled the amount of start-up expenses that someone starting a...