{"id":361,"date":"2011-04-15T10:06:42","date_gmt":"2011-04-15T17:06:42","guid":{"rendered":"https:\/\/cmcdllc.com\/?p=361"},"modified":"2021-06-14T17:47:41","modified_gmt":"2021-06-15T00:47:41","slug":"nov-2010-cmcd","status":"publish","type":"post","link":"https:\/\/cmcdllc.com\/?p=361","title":{"rendered":"NOV 2010 CMCD"},"content":{"rendered":"<p><strong>SMALL BUSINESS JOB ACT IN 2010<\/strong><\/p>\n<p><strong>EXPANDED SECTION 179 DEDUCTION<\/strong><br \/>\nFor tax year 2010 and 2011, the section 179 expense<br \/>\ndeduction amount increases to $500,000 of capital<br \/>\nequipment purchases and adjusts the asset addition<br \/>\nphase-out threshold to $2 millions. As a result, a greater<br \/>\nnumber of businesses will qualify for the Section 179<br \/>\nwrite-off.<br \/>\nFor those owning restaurants, retail stores, or other<br \/>\ncommercial building under lease can benefit if the<br \/>\nimprovements are completed in 2010 or 2011 tax year.<br \/>\nPrior to this legislation, the first-year Section 179 expense<br \/>\ndeduction allowed business to write off the first $250,000<br \/>\nand this deduction phased out as the taxpayer\u2019s eligible<br \/>\npurchases exceeded $800,000.<\/p>\n<p><strong>PARTIAL ANNUITIZATION LIFE INSURANCE<\/strong><br \/>\n<strong>AND ANNUITY CONTRACTS<\/strong><br \/>\nEffective for amounts received in tax years after<br \/>\n2010, a taxpayer is permitted to annuitize part of<br \/>\ninvestment in an annuity, endowment, or life<br \/>\ninsurance contract while not annuitizing the balance.<br \/>\nHowever, the portion of annuitized must be paid over<br \/>\n10 years or more or be annuitized for the lives of one<br \/>\nor more individuals.<br \/>\nPartial distributions from the cash value of an annuity<br \/>\nor life insurance are taxable first as ordinary income.<br \/>\nThe holder is permitted to annuitize the entire<br \/>\ncontract, recovering each lifetime payment partially<br \/>\nas ordinary income and partially as return of basis.<\/p>\n<p><strong>2010 BREAK ON SELF EMPLOYMENT TAX<\/strong><br \/>\nEffective only for the tax year beginning in 2010, a<br \/>\nself-employed proprietors and partners may<br \/>\ndeduct the cost of health insurance, including that<br \/>\nof spouse and dependents\/children not yet age 27<br \/>\nas of the end of tax year, both for income taxes<br \/>\nand self-employed Social Security tax which the<br \/>\ncost of health insurance cannot be used to<br \/>\ncalculate before.<br \/>\nThe value of this one-year deduction in computing<br \/>\nself-employment tax will be significantly greater for<br \/>\nthose whose employment income is under<br \/>\n$106,800, so that the taxpayer can receive the full<br \/>\n15.3% benefit of deduction.<\/p>\n<p><strong>1099 REPORTING BY LANDLORDS &amp; INCREASE IN INFORMATION RETURN PENALTIES<\/strong><br \/>\nTaxpayers conducting a business with payment of $600 or more to a service provider are required to issue<br \/>\nForm 1099 report to both IRS and payee. Under the act, those landlords making payments $600 more to<br \/>\nindividuals or partnerships are required to issue1099 information returns.<br \/>\nThe tax law already imposes a series of penalties on those who fail to file 1099 and other information returns<br \/>\nwith both the IRS and payee.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>SMALL BUSINESS JOB ACT IN 2010 EXPANDED SECTION 179 DEDUCTION For tax year 2010 and 2011, the section 179 expense deduction amount increases to $500,000 of capital equipment purchases and adjusts the asset addition phase-out threshold to $2 millions. As a result, a greater number of businesses will qualify for the Section 179 write-off. For [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[],"_links":{"self":[{"href":"https:\/\/cmcdllc.com\/index.php?rest_route=\/wp\/v2\/posts\/361"}],"collection":[{"href":"https:\/\/cmcdllc.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cmcdllc.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cmcdllc.com\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/cmcdllc.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=361"}],"version-history":[{"count":4,"href":"https:\/\/cmcdllc.com\/index.php?rest_route=\/wp\/v2\/posts\/361\/revisions"}],"predecessor-version":[{"id":363,"href":"https:\/\/cmcdllc.com\/index.php?rest_route=\/wp\/v2\/posts\/361\/revisions\/363"}],"wp:attachment":[{"href":"https:\/\/cmcdllc.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=361"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cmcdllc.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=361"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cmcdllc.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=361"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}