Additional info on the new Small Business Law
In checking some additional sources I found this new info from USA Today
According to USAToday, some elements the new bill contains include:
· The bill immediately extends the SBA Recovery Act provisions. In a few days, it will restart the SBA’s Recovery lending, beginning with the more than 1,300 small businesses that have been waiting to get the credit they need.
· Effective Monday, when small businesses buy new equipment, they may immediately write off the first $500,000 of that investment.
· For eligible small businesses, some long-term investments in the company will be subject to zero capital gains taxes.
· Entrepreneurs with a fresh idea will be able to deduct the first $10,000 of their start-up costs.
· Those who are self-employed will be able to deduct 100% of the cost of health insurance for themselves and their family.
E Enjoy !!
Rich
New Small Business Law !
GREAT News….
The Small Business Jobs Act will allow self-employed individuals to fully deduct the cost of their health insurance from their self-employment taxes for 2010. Currently, self-employed individuals are prohibited from fully deducting the cost of their health insurance from their self-employment taxes, resulting in an additional tax that no other worker or business owner is forced to pay.
Contact your accountant and be sure that they know about this great opportunity.
As for the opportunity for a family or small business to have access to additional loans… I believe that has yet to be proven.
While the law is designed to free up money for small business (which it is important to remember that according to the SBA is any business with less than 500 employees) and has given a financial shot in the arm to banks to loan out the money… it still remains to be seen.
Lending institutions in the past have been given money to promote small and family business and it just didnt seem to really work. Some of the institutions held onto the extra money, some just put so many restrictions on the money that it was easy to turn down many of the applications.
Lets see where that goes… however those of us who are self employed, we can celebrate the new deduction for our health care in our 2010 taxes.
Have a great day and a profitable week !!
Rich
2011 Tax hikes are coming !
Hey fun people….
Lets take a look at what’s going to be happening tax wise in a few months from now.
Income tax bracket changes for 2011
In case you weren’t aware, the Bush tax cuts of 2001 and 2003 are set to expire at the end of 2010. Thus, if Congress doesn’t act, the relatively low income tax rates that we’ve been enjoying (hah! enjoying?) will soon be a thing of the past. They will be replaced by the pre-2001 tax brackets.
In other words, the 10%, 15%, 25%, 28%, 33% and 35% tax brackets that we’ve grown accustomed to will be replaced by 15%, 28%, 31%, 36%, and 39.6% brackets. It’s hard to say exactly where the income cutoffs will lie, but if we base the numbers on the 2010 income tax brackets and add 3% for inflation, the 2011 tax brackets might look something like this:
Tax Bracket
Married Filing Jointly
Single
15% Bracket
$0 – $70,040
$0 – $35,020
28% Bracket
$70,040 – $141,419
$35,020 – $84,872
31% Bracket
$141,419 – $215,528
$84,872 – $177,006
36% Bracket
$215,528 – $384,860
$177,006 – $384,860
39.6% Bracket
Over $384,860
Over $384,860
Capital gains tax changes in 2011
Beyond the increased federal income tax brackets, the capital gains tax rates will also be changing (and not for the better). The top rate for long-term capital gains will be rising from 15% to 20%, and the 0% rate for those in the lowest tax brackets will be replaced by a 10% long-term capital gains rate.
Why worry about 2011 income tax changes?
Since the 2011 tax year is so far off, you might be wondering why we’re even talking about it right now. Well, as I noted above, the time to being planning for things like this is right now – before the changes go into effect as these potential income tax rates have the potential to take a big bite out of your savings account.
What sort of planning should you be doing? I can think of several things off the top of my head. For starters, if you’re in a position to accelerate income from 2011 into 2010, you might want to do so. In many cases this is easier said than done, but it’s worth exploring if you’d like to shield your income from the potentially higher rates.
Also, if you’re anything like me, you may wait until the end of the year to make your charitable donations. If so, then by waiting just a few more days (until January 1, 2011) to write that check, you could net a substantial tax savings. While you’d have to wait longer to claim the deduction, it might be worth it.
Similarly, if you anticipate selling investments to generate cash during 2011, you might consider moving that up to the end of 2010 to get in on the (presumably) lower capital gains tax rates.
ESTATE TAX RETURNS in 2011 with a VENGEANCE !
The federal estate tax is scheduled to return with a vengeance on Jan. 1, 2011, imposing a levy of up to 55% on estates valued at more than $1 million. And the same congressional paralysis that allowed the tax to expire in 2010 could thwart efforts to pare it back, estate planning attorneys say.
A $1 million exemption would affect a lot of families that are not even aware that they fall into that category . You start adding up the value of a home, an IRA or 401(k) retirement account, and lets not forget the value of your family business and some other savings and you get to $1 million pretty easily.
So what does this mean to us….
Unless Congress acts, the federal estate tax, which was repealed this year, will return in 2011 with a lower exemption and a higher tax rate. This table shows the tax liability for a $5 million taxable estate, based on the year of death:
Year
Tax liability
2009
$675,000
2010
$0
2011
$2.0 million
Source: Deloitte Tax and Nickle
Tell next time
Have a great day and a profitable week !!!
Family and Small Business ALERT !
Family and Small Business ALERT !
Dave Gibson, writing for the Philadelphia Examiner just wrote the following article..
Obama may be planning to grant amnesty to illegal aliens by executive order
Obama knows that there will be no vote before November, on so-called ‘comprehensive immigration reform,’ (amnesty for illegal aliens).
Unable to deliver amnesty as he promised, at least through Constitutional means, there is mounting concern that Obama will use the power of executive order to do so.
“As I have said before…We will be told that granting citizenship to such a large group of people at once will be a tremendous boost to our tax base, and end our exploding budget deficits.”
Of course, the vast majority of illegal aliens do not now, nor will they ever make enough money to even qualify for income taxes, they will simply join the 48 percent of Americans who currently pay nothing and our National Debt will continue to soar.
The real reason Obama wants to grant amnesty to the mostly Hispanic population, is to secure the vote that they would then have as American citizens. Obama believes that doing so would assure Democratic control of the White House and Congress for the next several generations.
At least eight U.S. Senators believe that Obama is preparing to order DHS Secretary Janet Napolitano to provide a defacto amnesty, through the use of massive deferred action or parole for the millions of illegal aliens now living inside our borders.
This single act, I believe, could destroy business as we know it. The influx of 20,000,000 illegals, many of which would need to be added into our system of social welfare that is already costing employers and employed citizens Billions of Dollars, would all but insure additional taxation that may become so high that it may lead to additional loss of jobs and businesses to close their doors.
Thought you should know…
Some Bills that just won’t go away… will hurt business!
Hey there Fun People !!!
One thing that most people don’t know is that Bills that are introduced into the U.S. Congress or Senate just don’t go away after a period of time but get “caught up” in committees for what seems like, and at times is, forever.
T
he problem with that is that these bills sit on the back burner until the legislators feel that they might have the chance of passing and then they bring them back up in hopes that they can get them through.
The following bills are again raising their head above the murky waters of federal politics, in hopes of passing.
These are Bills that you REALLY need to know as they are very damaging to family and small business alike to the point that, if passed, I can see where it could lead to the closing of many of our businesses.
It should also be known that often times these damaging bills to business are attached to other bills that they know will pass and therefore are passed without people even knowing that they are there till it’s too late.
The Family Business Chamber of Commerce opposes these Bills and is making that opposition known to both the US Congress and Senate.
Join the rest of us in Family Business Chamber of Commerce to help your voice be heard on these types of issues. Its only $10 a month and will go a long way to help YOU be heard as well as to network with other family businesses and a host of other benefits of belonging to this national chamber of commerce.
Let me start with H.R 2460 that was introduced on May 18th, 2009. This bill is one of the ones now being revisited to see if they can bring it back on the floor of the congress.
H.R.2460 (May 18, 2009)
Healthy Families Act (Introduced in House - IH)
In a Nutshell:
The act would require employers to permit employees to earn up to 56 hours of paid sick time including paid time for family care. “An employer shall permit each employee employed by the employer to earn not less than 1 hour of paid sick time for every 30 hours worked. An employer shall not be required to permit an employee to earn, under this section, more than 56 hours of paid sick time in a calendar year, unless the employer chooses to set a higher limit.”
Workers can also use sick days to care for a sick family member, to obtain preventative or diagnostic treatment or to seek help if they are victims of domestic violence. Small employers with fewer than 15 employees are exempt from the Act and employers can require workers to provide documentation supporting any request for leave longer than three consecutive days.
Definition of employer: An employer is any “person” engaged in commerce or in any industry or activity affecting commerce who employs 15 or more employees for each working day during each of 20 or more calendar workweeks in the current or preceding calendar year.
(So does this mean that in a family business every member of the family that has influence in the business can be held liable? (see Liability below)
Covered employees: Part time employees are included. If the normal workweek of such an employee is less than 40 hours, the employee shall earn paid sick time based upon that normal work week. For the purpose of counting employees for coverage, an employee is basically anybody on the payroll for any amount of time. This aspect of the definition has its roots in the Fair Labor Standards Act definition which is much broader than other employee definitions such as those found under equal opportunity laws. Employees will be eligible to earn paid sick time at commencement of employment.
Use of sick leave: An employee shall be entitled to use the earned paid sick time beginning the 60th calendar day following commencement of employment. After that 60th day, the employee may use the paid time as it is earned. An employer is permitted to loan paid sick time to an employee in advance of the earning of the time by the employee. Paid sick time earned shall carry over from one calendar year to the next; however an employer does not have to permit an employee to accrue more than 56 hours of paid sick time at a given time.
Liability: The bill provides for a civil action to recover damages by employees, individuals or their representative for and on behalf of the employees or individuals; or
the employees or individuals and others similarly situated.
(This could be interpreted as the ability for the employee, and each of the employees family or any other that has been impacted by any perceived violation of this act to sue the employer.)
Just think about the implication that this will have on your business if it passes. I noted in the bill that there is no clause for employer hardship.
There are a HUGE number of Red Flags in this Bill and with luck it will again go back into the basement of the committee.
My next posting will be another Bill that is being revived… stay tuned!
Tell then,
Have a Great Day and a Profitable Week
Remember to stop by the Family Chamber of Commerce at www.familybusinesscc.com
Rich
Its all in how you say it…. FAMILY business or family BUSINESS
Hey Fun People !!!
One of the issues that all family businesses deal with has a lot to do with which word you put the emphasis on: family or business. We must remember that we are dealing with two of the most important demands in our lives: Families and business.
Those who view it as a “family business” put their family relationships before the best interests of the business. Often they employ many family members because of a sense of loyalty or expectation. Family members assume they are “entitled” to work in the business and often feel that they should be part of upper management, regardless of whether they are qualified or experienced.
This can also lead to preferential treatment of family members over non-family employees, which begins to destroy trust and morale in the workplace. Non-productive relatives on the payroll can weigh the business down or, in extreme cases, even drive it under.
You can end up with an Uncle Joe on your payroll who rolls into work late, leaves early, and is otherwise found on the golf course. Handling him can be tricky, especially since the Thanksgiving family dinner is always at Uncle Joe and Aunt Mary’s home. If anyone dares to bring it up, doors will slam and the turkey stands a good chance of flying through the air.
Those who view it as a “family business” see the business as a entity separate from the family. The success of the business is primary over the family relationships within that business. Family members are hired only for jobs where their experience or qualifications match the position. This can cause hard feelings, but it’s far better than having to fire non-producing family members or, in the worst case, kill the business.
So how do you change the way a family sees its business? The best advice is to help the family understand, from the moment the business is launched, that there are no entitlements or special treatment for family members. All family-related business issues must be treated the same as if they were a non-family issue. There is no child too young to learn that work is rewarded and that a family business requires lots of it, but that there is a great future for those who succeed. It’s establishing a work ethic that will carry your family members through for the rest of their lives. Children will also learn that with the proper education and development of skills they will have an opportunity to be part of the family business at the level of their competence.
It is also important for family members to be aware of the areas in which they need professional development and to make every effort to attend skill-set training relating to employee management, leadership, communications, basic human resources, customer service, and a myriad of other primary skills.
Family members who are employees must understand that everything they say and do will be watched by all the other employees. They need to support the business’s policies and decisions. They are seen as representatives of the business, both inside the company and in the eyes of the public.
So, if you own a family business, or work in one, ask yourself which word you emphasize when you think about your business. Is it a family business or a family business?
Dont forget to visit us a www.familybusinesscc.com
Till next time… have a great day and a profitable week
Rich
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