If your organization is still hoping to take advantage of the slew of
small-business tax breaks that went into effect in February, you’ll need to get moving.
We’re more than halfway through the year, and Obama’s stimulus package benefits expire when 2009 does.
Even IRS recently reminded taxpayers of all they stand to gain, courtesy of The American Recovery and Reinvestment Act.
Here’s a recap of all the breaks available.
You may have to work fast to capitalize on some of these, but it could be well worth it:
Special Depreciation Allowance
Any room left in the ’09 budget for new property or equipment? Your company can take the 50% bonus depreciation as long as you put that equipment into service by year-end.
Section 179 Deduction
You can still deduct up to $250,000 of the cost of that machinery, equipment, furniture, etc. (The deduction was supposed to drop to $133,000.)
Expanded Net Operating Loss Carryback
If your business is in the unenviable position of having its expenses exceeding its income last year, here’s some consolation.
As long as you have an average of no more than $15 million in gross receipts in a three-year period and have been profitable in the past, you can claim a special refund. But act fast: You have until Sept. 15 to file a claim.
Note: There are also some small biz breaks for individuals involving estimated taxes and the sale of stock.
Go here for tons of guidance on Recovery Act-related tax breaks and other possible financial advantages.