Anthony Sykes & Company

    As we approach the end of the year I would like to talk about some tax law changes that may be of benefit to your business. On September 27, 2010 The Small Business Jobs Act of 2010 (SBJA) was enacted. It's purpose is to spur growth and help small businesses in particular. One provision that may help self employed business owners is the Sect 2042: Deduction for health insurance costs in computing self-employment taxes in 2010. Generally small business owners may not deduct the cost of health insurance when computing self-employment tax. Under (SBJA) with specific limitations the business owner may deduct the cost of health insurance for themselves and their families when computing self-employment taxes. Sect.2031: Increase in amount allowed as deduction for start-up expenditures in 2010 for anyone starting a new business they may be able to deduct up to 10,000 in startup expenses. However if the startup cost exceed 60,000 the deduction may be reduced dollar for ...

Th Internal Revenue Service has released for the 2010 tax season form 8941 Credit for Small Employer Health Insurance Premiums along with the instructions.  In general, the credit is for small employers that pay at least half of the premiums for single health insurance coverage for their employees.  It will specifically help employers that employ moderate and lower income workers. A business can claim the credit for 2010 through 2013 and for any two years after that.  Those employers with 10 or fewer full time equivalent (FTE) employees paying an average wage of $25,000 or less can receive the maximum credit.  The credit is phased out at 25 or more employees or average wages of more than $50,000 per year.  Remember the eligibility rules in part consider the number of FTE employees the company has, so if a business uses part-time employees it may still qualify for the credit.  In reading the instructions and filling out the form 8941 I believe that unles...