The Senate passed a small business tax bill September 16, 2010 which includes several small business tax incentives. The House is expected to vote and pass the Senate bill in the very near future and President Obama indicated he will sign the bill. A few of the significant items are:
- Double of the Code Section 179 expensing amount to $500,000 for 2010 and 2011. Important to note, after 2011, the expensing limitation is scheduled to revert back to the anemic $25,000 limit.
- 50% bonus depreciation on qualifying assets is reinstated.
- Self-employeds can deduct their medical premiums on Schedule C for 2010.
Don't expect passage of other tax items, such as fixing the federal estate tax, extension of the Bush cuts, and the AMT patch, before the November elections.
