Stimulus advice: Four tax breaks you need to know
"Small business will be the engine that drives us out of this recession." This recurring theme continues to show up consistently in research, articles and blogs we read.
This latest post comes from our friends over at Small Business Labs and covers four tax breaks in the stimulus package for small businesses:
- You can carryback net operating losses (NOLs) in 2008 (tax years beginning or ending in 2008) as far back as five years if you're under $15 million in revenue. Using the longer carryback period ensures that current losses will be fully utilized to produce the largest tax refund possible. This can help with cash flow issues now.
- You can fully depreciate $250,000 in furniture, computer equipment, off-the-shelf software, etc., in 2009 -- and there are other accelerated depreciation bonuses along with limitations if you have over $800k to depreciate. Time to get everyone new computers!
- Tax credits for hiring certain workers, including veterans.
- There are certain energy tax credits for going green.
Check out the full report. This is a great resource that is chock full of info about the stimulus and small business.