What provisions of the Recovery Act help small businesses?
The IRS Web site describes key highlights of the Recovery Act, including these benefits for small businesses: Net Operating Loss Carryback – Small businesses with deductions exceeding their income in 2008 can use a new net operating loss tax provision in ARRA to get a refund of taxes paid over the past five years instead of the usual two. have more information on the net operating loss carryback provision. Technical information is contained in Revenue Procedure 2009-19. Section 179 Deduction – A qualifying taxpayer can choose to treat the cost of certain property, frequently referred to as section 179 property, as an expense and deduct it in the year the property is placed in service instead of depreciating it over several years. Under ARRA, qualifying businesses can continue to expense up to $250,000 of section 179 property for tax years beginning in 2009. Without ARRA, the 2009 expensing limit for section 179 property would have been $133,000. Reduction of Estimated Tax Payments – No
