Senate has approved the Small Business Jobs and Credit Act of 2010 (H.R. 5297) which includes a package of enhanced small business tax incentives. In addition to many non-tax provisions related to small business lending and access to capital, tax provisions in the legislation include a retroactive extension of bonus depreciation, a doubling of the Code Sec. 179 expense limit, a five-year general business credit carryback, a 100-percent exclusion for qualified investments in small business, an increase in start-up business expensing and a five-year holding period for built-in gains of S Corporations. Other provisions address the tax treatment of business-provided cell phones, the penalty for failure to report a listed transaction, Roth accounts in 401(k), 403(b) and 457(b) plans and the treatment of nonqualified annuities.
But the Bill also includes a provision that requires landlords to issue Forms 1099-MISC to service providers who were paid $600 or more in any calendar year. The Bill also substantially increases the penalties for failure to file these information tax returns.
The House is expected to pass a similar Bill this week and President Obama has said he would sign the Bill into law as soon as it arrives at his desk.
For more information, read http://tax.cchgroup.com/legislation/Small-Business-Jobs-Act-7-23-10.pdf
