Simply stated:

1. More money will be available for loans to help you get your indie business started or back on its feet. Check out the Small Business Lending Fund.

2. And if you did spend a lot of money to start up a new business you may now immediately deduct $10,000 of those costs rather than $5,000.

3. You get an extra deduction for equipment purchases made in 2010.

4. The 2010 limit on the deduction for autos purchased for business use has increased from $3,060 to $11,060.

5. There are many, many business tax credits. They range from the distilled spirits credit (Yes, distilled spirits. You know what they are.) to the health insurance credit.

These tax savings may be carried back to previous years. But !!! your income must have been $50-million or less for the last three years. Hmmmm.... think that fits most of us indies.

6. And, by the way: these credits are not subject to the Alternative Minimum Tax (AMT). See why you need a tax pro?

7. I'm sure you were all keeping meticulous records of business use of your cell phone. Well, that chore is no longer necessary!

8. There are new rules for IRA rollovers to a ROTH.

9. The penalty for not filing a 1099 -- you know, the income statement forms you are supposed to send to your fellow band members, or the guy who helps out in the shop -- has increased from $50 per form to $100 per form.

10. And the biggie: Health insurance premiums are now deductible not only from income which saves you income tax, but also from self-employed income. This reduces your self-employment (SE) tax. This means that if your health insurance premiums are $10,000 for the year you save an additional $1,500 or thereabouts in taxes.  

Do talk with your tax pro about these tax savings. And if she has questions direct her here to NATPTAX.com and more about the Small Business Jobs Act of 2010.

And also, no matter how busy you may be, I urge you to take a minute to read this post What's a small business?  

June Walker

june@junewalkeronline.com