The Small Business Jobs Act also extends a Recovery Act provision for 50 percent “bonus depreciation” through 2010, providing 2 million businesses, with the ability to make new investments and know they can receive a tax cut for this year by accelerating the rate at which they deduct capital expenditures. The bill also allows 2 million self-employed to get a deduction for the cost of health insurance for themselves and their family members in calculating their self-employment taxes for this year.
The Jobs Act also changes rules so that the use of cell phones can be deducted without burdensome extra documentation. The bill also temporarily increases the amount of start-up expenditures that entrepreneurs can deduct from their taxes for this year from $5,000 to $10,000 (with a phase-out threshold of $60,000 in expenditures.)
Come back for part III of the Small Business Jobs Act!