No High Write-Offs for Business Equipment

Image via Wikipedia

The lawmakers were busy messing with health care late last year and missed adjusting some big small business write offs for 2010.  Maybe they’ll fix it this year and make them retroactive.

1.  The 50% bonus depreciation write off is gone in 2010.  Before 2010, you could write off half of the purchase price of certain equipment purchased in 2009.  Bye bye.

2.  Similar to #1 (but different), the higher write offs of equipment purchases used to be capped at $250k in 2009… now down to $134k.

3.  The lawmakers allowed for estimated tax penalty relief for small business owners by allowing them to pay in either 90% of prior year tax or 90% of current year tax, which ever is lower.  But that was 2009 (that’s so “last year”).  That benefit has now reverted back to pre-stimulus relief.  Now you have to pay in at least 100% of your prior year tax (2009), or 90% of your current year tax (2010) to avoid penalty.

4.  Late filing penalties for partnerships and S Corps go way up!  The IRS will charge you $195 per owner per month now for 12 months if your return is late.

Be careful out there…

Questions?  Leave them in the comments.

Jason M. Blumer, CPA

Tweet This (and such)

Hide Sites