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. 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. Carbon Dioxide Sequestration Credit Carbon dioxide captured after October 3, 2008, from an industrial source may be eligible for a 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. 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. Health Savings Accounts (HSAs) Information on 2009 changes for Health Savings Accounts (HSAs). 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. New Form 8926 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). Nonqualified Deferred Compensation Plans There are new regulations on reporting requirements for amounts deferred under a nonqualified deferred compensation plan. S Corporations There are several changes affecting S-corporations. 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 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: April 29, 2009