Welcome Guest. Register Now!  

For 2010 Tips for tax year 2010.

LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 02-05-2011, 12:12 PM
TaxGuru's Avatar
Tax Guru
Join Date: Jan 2007
Location: New Jersey, USA
Posts: 2,400
Blog Entries: 3
What are the major "2010 Tax Law Changes for 2010" that will significantly affect Small Businesses?

There were several changes tax law changes for 2010 that had a significant impact for small businesses. The following are the some of the most significant changes as follows;

1)A Change in the Business Mileage Rates
For the tax year 2010, the standard mileage rates for business use of vehicles decreased to 50 cents per mile driven. For medical and moving travel, the standard mileage rate is 16 cents per mile, while the miles driven for charitable organizations remains unchanged at 14 cents per mile.

2)Canceling Business Debt
The American Recovery and Reinvestment Act now allowed small businesses in 2010 to choose to delay the reporting requirements of income gained from the cancellation of debt, up to 5 years.

3)Domestic Production Activities
In an effort to boost domestic production activities, the deduction for qualifying income for domestic production now increases to 9% in 2010 for certain qualifying businesses.

4)Small Business Health Care Tax Credit

The tax credit will now be available to assist small businesses to afford the cost of covering employees with health care. But, this tax credit is only available “to business owners paying a minimum of half the cost of single health care coverage for employees.”

5)Employer and Employee Payroll Taxes for 2010
The maximum amount of wages subject to Social Security tax will remain the same as 2009 at $106,800. As in prior years, there is no limit to wages subject to the Medicare Tax, and earned wages (and self employed income) are still subject to the 1.45% tax. The FICA tax rate, which is the combined social security tax rate of 6.2% and the Medicare tax rate of 1.45%, still remains unchanged at 7.65% for 2010. Thus, the maximum social security tax that employees and employers will each pay in 2010 is $6,621.60.

6)First-Time Buyers with Home-Based Businesses

If a taxpayer purchases a first-time home and decided to operate his or her business from that home, that taxpayer can still qualify for an $8,000 tax credit, if the home was purchased before April 30, 2010.

Find a CPA near you!

Ask TaxGuru Please refer to the legal disclaimer.

Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote

Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off

Similar Threads
Thread Thread Starter Forum Replies Last Post
As part of the "Small Business Jobs Act of 2010 Tax Provisions, IRS allows increased expensing limitations for 2010 and 2011 for certain real property treated as Code section 179 property. TaxGuru General 0 01-31-2011 07:58 PM
As part of the "Small Business Jobs Act of 2010 Tax Provisions, IRS allows increase in amount allowed as deduction for start-up expenditures in 2010. TaxGuru General 0 01-31-2011 07:56 PM
As part of the "Small Business Jobs Act of 2010 Tax Provisions, IRS allows Temporary exclusion of 100% of gain on certain small business stock. TaxGuru General 0 01-31-2011 06:14 PM
When must Corporations use the "Electronic Filing" method for 1096 and 1099's in 2010? TaxGuru Income 0 12-14-2010 12:43 PM
"Seven Circumstances" that can trigger a possible audit by the IRS for an individual taxpayer in 2010?? TaxGuru For 2010 0 11-15-2010 10:31 PM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 » Income
 » IRA/Sep
 » Medical
 » Payroll
Forum for CPAs
Financial Planning