Archive for May 2011

Big News for Small Business – Two Tax Benefits for 2011

After a long hiatus thanks to a busy tax season, we’re back with news you can use. Here at JFTS we believe that this year’s April 18th filing deadline is just the beginning and that there is still so much we can offer to help you prepare for 2011.

First off, this week marks Small Business Week at the IRS and one way you can take advantage as a small business owner is to participate in a free, 30-minute webinar titled “Small Business Advantage” to learn more about planning for 2011. The webinar is scheduled for tomorrow – Wednesday, May 18th at 2pm EST.

So far the biggest news is two provisions for 2011, one credit and one deduction, which are:

1) Health Care Tax Credit

In order to qualify an employer must:

  • cover at least 50 percent of the cost of health care coverage for some of its workers based on the single rate
  • have less than the equivalent of 25 full-time workers (for example, an employer with fewer than 50 half-time workers may be eligible).
  • pay average annual wages to qualifying employees of under $50,000

Note that this applies to both for-profit and non-profit organizations that meet the above criteria.

The benefit is:

  • worth up to 35 percent of a small business’ premium costs in 2010 (25% for non-profit employers) and increases to 50 percent (35 percent for tax-exempt employers) on 1/1/14.
  • phased out gradually for firms with average wages between $25,000 and $50,000 and for firms with the equivalent of between 10 and 25 full-time workers.

2) Accelerated Write-Offs

For 2011 there will still be accelerated depreciation available for most qualifying business property purchased and put into service for 2011. This includes both 50% and 100% deductions.

Prior to making any major purchases, please talk with your tax professional first to see if you can qualify for an accelerated deduction. We will post an update later this week as we get more information on this particular deduction.

Until next time, have a great off-season and don’t forget that setting up a consultation with a Jefferson Franklin Tax Patriot is easy, convenient and secure. So contact us today and we’ll assist you with your tax needs.