Business Tax Thoughts

…..seems like the Trillion Dollar stimulus is for everyone but you?  Perhaps there is something in it for your business 

We know, feels like all the banks that won’t renew your credit line or extend any new credit are getting all of the taxpayer funds.  What’s in it for the small business owner?  Nothing….or is there something?

One of the ideas working its way through the legislative process is a tax provision that would enable you to carry current losses back five years instead of the normal two years.  This would allow you to immediately recoup taxes you paid on profits during the halcyon days against the losses you incurred just last year in 2008.  If passed in its proposed form, this would actually allow for a refund now. 

There were other already in place items that were passed last year.  These include a 20% credit on research expenditures and the ability to write off leased office or other space improvements over 15 years instead of 39.  There was also a twofold increase to $250,000 for equipment and other qualifying purchases.

Be sure to check with your accountant to take advantage of any of these changes.