Tax Breaks For Business Owners In 2010, 2011
There is some good news for business owners looking for more tax breaks this year. Due to the current state of the economy, the government has extended many new tax breaks to business owners to try and stimulate the economy.
Economic Stimulus Act of 2008
Part of the Economic Stimulus Act of 2008 offers many breaks for businesses that made large purchases in 2008. This act offers up to $250,000.00 worth of equipment purchases that can be deducted on your tax return. The previous limit was $128,000.00. The government was hoping to encourage business owners to spend more money in 2008. The equipment purchased must have been purchased and put in service before January 1, 2009.
Depreciation
If you purchased a vehicle in 2008 for your small business use, then it may qualify for a larger first year depreciation amount. Depreciation limits on property purchased also increased. The new first year depreciation limits increased to 50% when the value of the purchase exceeds $250,000.00.
Heroes Earning Assistance and Relief Act of 2008
The new tax break allows for small businesses to receive a tax credit. They must employ less than 50 employees and they must continue to pay employees that are called to active duty. These businesses can now claim a credit of up to 20% of the wages paid. This credit went in to effect on all payments made after June 17, 2008 and is set to expire on January 1, 2010.
Mileage Reimbursement
The mileage rate for businesses also saw an increase in 2008. You can now deduct up to 50.5 cents per mile driven for business purposes.
TurboTax Online now offers a biggest refund guarantee. Visit TurboTax Online to get up to date tax law changes and new tax break information.
If you have any other home business questions, TurboTax Online has a comprehensive web site that can give you the answers. If you run a business out of your home then, you do qualify for the home based business tax deductions. Don?t miss out on the many deductions you qualify for.
