The Small Business Jobs Act and the health care reform bill allow for some major tax breaks for small businesses.
As you prepare for tax season, keep these credits and deductions from CNNMoney.com in mind:
* Health care tax credit for small businesses that pay at least half their employees’ health coverage. Businesses with 10 or fewer full-time employees with annual wages that average $25,000 or less get the biggest break, which phases out for businesses of 25 employees or businesses that pay average wages above $50,000.
For 2010 through 2013, the tax credit covers up to 35% of the money that a business spends on health insurance premiums. In 2014, the top tax credit goes up to 50%.
* Health insurance deduction for self employed: In 2010, the self-employed can deduct health insurance costs from both business profits and self-employment taxes.
* Section 179 provision: Allows businesses to write off the full amount of qualifying equipment or computer software made in 2010 or 2011, up to $500,000 per business, per year. Only allowable if your business turns a profit.
* Bonus depreciation extension: This allows businesses that did not turn a profit to get write-offs for the purchase of new equipment, including buildings (unlike the Section 179 provision).
* Depreciation on a business car or truck: Business owner who buy a new vehicle can depreciate $11,060 for a car, and $11,160 for a light duty truck or van. That includes an extra $8,000 bonus depreciation, on top of the usual first-year depreciation.
Gen Y Entrepreneurs: Nearly Half Say They Want to Start a Business
Nearly half of Generation Yers say they plan to start their own business in the next five years, according to a national poll commissioned by Employers, a small business insurance specialist. Eight percent of the 18-to-25-year-olds surveyed say they have already started a business.
Thirty-five percent of Gen X respondents (ages 26 to 45) also report the desire to create new businesses within five years. Twenty-one percent of Baby Boomers (ages 46 to 61) said they wanted to start a business within five years.
The survey commissioned by Employers sampled 1,258 consumers through phone interviews.
This article was submitted by Rohit Arora, co-founder of Biz2Credit. Biz2Credit is a small business marketplace that connects entrepreneurs with financing options and advice to grow their business. Send all questions to