New tax Law changes for small business owners

HATTIESBURG, MS (WDAM)- During 2010, there were several changes to tax laws for small business. The IRS offers incentives for small business owners to hire new staff and to keep them on board.

"We had higher credits for hiring certain individuals. For instance, someone who had been previously unemployed. You can get a reduction in your payroll taxes for employees during 2010 but if you continue to have that person on your payroll, there is a credit that you can get on your 2011 return."

There have also been a number of changes made to depreciation limits, said IRS Representative Dee Stepter.  "They have expanded what's called a section 179 expensing deduction and that let's you write off more of the cost."

Normally when you buy equipment for your business, you are required to spread out the cost over time, but with the 179 you can write off up to a certain amount of the cost, some instances it could be as much as 100%.

"Also with the Healthcare Act, small businesses did have a credit available to them, if they provided healthcare to their employees. So, it's a lot for small business owners to consider."

Stepter said, if you are a new business owner, the tax law changes can be quite a bit to take in but you can always find everything you need to know on the IRS web site by clicking on the business page.

"If they have questions because they are a new business, it has an A to Z index, where you can look at issues for new businesses and issues if you closed your business in 2010."

If you have already filed your return and suddenly realize you made a mistake, or you forgot a credit or deduction, Stepter said, you always have the ability to amend your return.