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As we move into the final quarter of 2010, it’s time to revisit current and pending changes in the tax laws that may affect you or your business. Congress has already enacted several pieces of legislation, and it is possible that more changes will come before the end of the year. Although certainly a mixed bag, the good news is you still have time to plan for 2010 and beyond.
I’d like to highlight two sections of the Hiring Incentives to Restore Employment (HIRE) Act:
1. Extension of enhanced small business expensing. The HIRE Act extends the enhanced expensing rules for machinery and equipment. For tax years beginning in 2010, the maximum amount a business may expense is $250,000. The expensing election begins to phase out when a business buys more than $800,000 of expensing-eligible assets.
2. Payroll tax holiday and up-to-$1,000 credit for employers who hire unemployed workers. Intended to help stimulate the hiring of workers by the private sector, the HIRE Act provides private employers an exemption from paying their 6.2 percent share of the Social Security payroll tax on “qualified employees” for the remainder of 2010. Check with your payroll department or third-party payroll service to ensure you receive any eligible benefits under this legislation.
Start planning early, stay in touch with your professional service providers and stay informed. More in depth information about this and other tax topics can be found on our website, PKFTexas.com/TaxNews.