Tax Changes for Businesses | |
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5-Year Carryback of 2008 Net Operating Losses (NOLs) for Eligible Small Businesses (ESBs) For 2008, you can choose a 3, 4, or 5-year carryback period for the part of your 2008 NOL that is an ESB loss. Agricultural Chemicals Security Credit The Food, Conservation, and Energy Act of 2008 added the agricultural chemicals security credit as part of the general business credit. Alcohol and Cellulosic Biofuel Fuels Credit There are several changes to alcohol and cellulosic biofuel fuels credits. Biodiesel and Renewable Diesel Fuels Credit There are several changes to the biodiesel and renewable diesel fuels credit. Build America Bonds Find out what a build America bond is and how to claim a credit. Business Start-up and Organizational Costs A separate election statement is no longer required to elect to deduct up to $5,000 of business start-up and organizational costs paid or incurred after September 8, 2008. Cancellation of Debt Certain businesses can make an irrevocable election to delay recognition income from the cancellation of business debt arising from the reacquisition of certain types of business debt repurchased in 2009 or 2010. Capital Gain Tax Rate Reduction for Corporations With Qualified Timber Gain Corporations with both a net capital gain and a qualified timber gain may have a reduced tax rate. Carbon Dioxide Sequestration Credit Carbon dioxide captured after October 3, 2008, from an industrial source may be eligible for a credit. Changes to Investment Credit There are several changes to the investment credit. COBRA Premium Assistance Credit The American Recovery and Reinvestment Act of 2009 (ARRA) allows a credit against employment taxes for providing COBRA premium assistance to assistance eligible individuals. Credit for Employer Differential Wage Payments Eligible small business employers may be able to claim a credit for differential wage payments. Depletion Changes to the taxable income limitation on percentage depletion for tax years 2007-2010. Depreciation and Section 179 Expense Section 179 deduction limits have increased, depreciation limits on certain electric vehicles have changed and the special depreciation allowance has changed for certain New York Liberty Zone property. Disqualified Corporate Interest Expense Disallowed Under Section 163(j) and Related Information For tax years beginning after 2007, corporations will use Form 8926, Disqualified Corporate Interest Expense Disallowed Under Section 163(j) and Related Information, to figure the amount of any corporate interest expense deduction disallowed by section 163(j). Domestic Production Activities Deduction For tax years beginning in 2007, 2008, or 2009, the percentage used to figure the domestic production activities deduction increases to 6%. Election to Accelerate Certain Credits in Lieu of the Special Depreciation Allowance Corporations and a certain automotive partnership can elect to accelerate certain credits. Employer-Owned Life Insurance Contracts Policyholders owning one or more employer-owned life insurance contracts may have to file a report. Health Savings Accounts (HSAs) Information on changes for Health Savings Accounts (HSAs). Low-Income Housing Credit Rules for the credit attributable to buildings placed in service after 2007. Maximum Automobile Value for Using the Cents-Per-Mile Valuation Rule An employer providing a passenger automobile for the first time for personal use by an employeeay use special rules for determining the value of the personal use. Meal Expenses When Subject to "Hours of Service" Limits Special rules for deducting business-related meal expenses. New Forms to Adjust Employment Tax Returns There are several new forms for adjusting employment tax returns. Nonqualified Deferred Compensation Plans There are new regulations on reporting requirements for amounts deferred under a nonqualified deferred compensation plan. Original Issue Discount (OID)Tables Contains latest version of OID tables. Prior year tables are also available. Partial Exclusion Increased for Gain From Certain Small Business Stock Exclusion of gain from the sale of qualifying small business stock is increased. Penalty for Late Filing of a Partnership Return The late filing penalty has increased for certain late filed partnership returns. Penalty for Late Filing of an S Corporation Return The late filing penalty has increased for certain late filed S-corporation returns. Qualified Transportation Fringe Benefits Monthly exclusion amounts have increased. S Corporation Built-in Gains Tax There is no tax imposed on the net built-in gain for a certain period. Self-Employment Tax The maximum amount of net earnings subject to the social security part of the self-employment tax has increased. Social Security and Medicare Taxes The maximum amount of wages subject to the social security tax and Medicare tax has increased. Standard Mileage Rate The standard mileage rate for business use of your vehicle, medical and move- related use and charitable use has increased for 2008. Vehicle Credits Information on new alternative motor vehicle credits. Work Opportunity Credit The qualified veterans group and high-risk youth groups have been expanded. |
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Page Last Reviewed or Updated: October 09, 2009