Tuesday, September 30, 2008

Tax Incentives For Small Business Owners

Small Business Tax Fairness and Simplification Act of 2007 - Amends the Internal Revenue Code to:
(1) allow self-employed individuals to participate in cafeteria pension plans;
(2) allow long-term care insurance under cafeteria plans and flexible spending arrangements;
(3) allow accelerated amortization of certain intangible assets (e.g., good will) acquired from a small business;
(4) increase the tax exclusion of gain from the sale of certain small business stock;
(5) provide a $2,500 standard tax deduction for home business expenses;
(6) permit certain small businesses to elect a taxable year ending in a month from April to November;
(7) increase the allowable number of S corporation shareholders; and
(8) exempt certain small businesses from withholding of tax requirements for payments made by government entities.

If you need help preparing your business tax returns, call a tax professional that will ensure you receive all the appropriate tax credits on your returns.


Julie B. said...

Interesting post. I want to run a business soon, so I'll keep this post in mind. Becoming, what I hope, an entrepreneur is somewhat new to me, so I can use all the help and advice I can get! I know it'll be tough. Lately I've been thinking about the idea of buying a business instead of starting from scratch. I'm not sure what I should go for. Franchise? Home-based? I don't know. Do you have any suggestions or advice? Thanks!

Angela Garcia said...

@Julie - Yeah, it's going to be a little rough, especially during times like today. Just use your best judgment during hard times and don't forget due diligence, and again, especially if you're going to buy a business. Speaking of that, it's probably best to know what's available in the area you plan on doing business. I suggest checking out sites like BizTrader.com, which is this online global marketplace where you can buy or sell a business. You can also use it to find a lender or broker or even invest in a business. I also suggest looking into local small business groups because they should know the ins and outs of business in your area. Good luck!