Tax Changes for Businesses | |
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Certain Timber Losses Certain income and expenses related to qualified timber property are no longer eligible in determining your net operating loss (NOL). 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. 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%. Employer-Owned Life Insurance Contracts Policyholders owning one or more employer-owned life insurance contracts may have to file a report. Fringe Benefit Parking Exclusion and Commuter Transportation Benefit Monthly exclusion amounts have increased. 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. Nonqualified Deferred Compensation Plans There are new regulations on reporting requirements for amounts deferred under a nonqualified deferred compensation plan. Qualified Transportation Fringe Benefit The monthly limitation on qualified transportation fringe benefit exclusion amounts has increased. S Corporations There are several changes affecting S-corporations. Self-Employed Health Insurance Deduction Self-Employed Health Insurance Deduction Partners and more-than-2% shareholders in an S corporation may ... 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 for 2007 and 2008. 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. Work Opportunity Credit The work opportunity credit has been extended to cover individuals who begin work for you before September 1, 2011. The qualified veterans group and high-risk youth groups have been expanded. |
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Page Last Reviewed or Updated: January 11, 2009