Tax Breaks 
- Effective for stock acquired at original issue after the date of enactment, the sale of certain small business stock held for more than five years is 100% excludable from gain.
- For tax years beginning in 2010, eligible small businesses can carry back unused general business credits for five years. Eligible small businesses are those with $50 million or less in average annual gross receipts for the prior three years.
- The holding period of assets subject to the BIG tax, which applies to corporations converting from C to S status, is reduced to 5 years if the fifth tax year in the recognition period precedes the tax year beginning in 2011.
- For tax years beginning in 2010 and 2011, the Code section 179 expensing limit is increased to $500,000 and the investment ceiling to $2,000,000.
- The expensing election is extended to certain qualified real property, including qualified leasehold improvements, qualified restaurant property, and qualified retail improvement property. Up to $250,000 of qualified property is allowed to be expensed.
- Bonus 50% first year depreciation is extended to property placed in service in 2010, and there are special provisions liberalizing these tax benefits for contractors subject to long-term contract accounting rules.
- For tax years beginning in 2010, the deduction for startup expenses is increased to $10,000 from $5,000, and the phaseout threshold is increased to $60,000 from $50,000.
- For tax years beginning in 2010 and before 1/1/2011, when calculating self-employment taxes, the deduction for health insurance costs can be taken into account (deducted) in computing net earnings from self-employment.
- The controversial Code section 6707A penalty is revised to greatly curtail the penalty for failure to disclose a covered transaction to the tax benefit received from the transaction. The penalty is now 75% of the tax benefit received, with a minimum penalty of $10,000 for corporations and $5,000 for individuals.
In keeping with the requirement to offset the cost of tax breaks with provisions that raise revenue, the following revenue raisers are included in the Act:
- This one actually provides a benefit in addition to raising revenue: distributions from 401(k) accounts can be rolled directly into the plan's designated Roth 401(k) account. Distributions have to otherwise be permitted under the plan, and the plan has to have a qualified designated Roth contribution program. The income on distributions made in 2010 can be deferred, half can be taxed in 2011, the rest in 2012.
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Starting in 2011, landlords will have to issue a 1099 if they pay a service provider $600 or more in a year. Temporary rentals of principal residences are exempted, and the IRS may issue regulations easing the rules for properties with income below a certain amount.
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