The Official Blog of Colleen Rich Entrepreneur & Lightworker: Bringing Light Into The Darkness

Continuation Part 2 – ‘Small Business Jobs Act of 2010′

Health Care Insurance

Another feature of this bill includes the ability to deduct the cost of HEALTH CARE INSURANCE for the Self Employed person and his/her family…as an Ordinary and Necessary BUSINESS EXPENSE…for Tax Year ending 12/31/2010.

So…IF you had $10,000 of Start up Costs and $7,500.00 of Health Insurance Costs…you are likely eligible for a $17,500.00 “expense” on just TWO lines of the Schedule C! If you are in the 35% Tax Bracket this year, this “deduction” would save you over SIX THOUSAND BUCKS IN TAXES!

Remember…EVEN IF you had not a DIME of “income” from your business this year (and only had the $17,500.00 worth of expenses!), you can still use the deduction to offset the TAXABLE PORTION of your income from ALL OTHER SOURCES…INCLUDING W-2 income, Interest Income, Partnership or Dividend Income Net Rental Income, Unemployment Income, and/or taxable Social Security Income! Virtually ANY other taxable income!

Moreover…don’t forget that ALL expenses related to the ON-GOING operating OF the business are deductible as well.

Please talk with your tax person. Don’t miss these very important and valuable Business Deductions.

Now that you have the all the information on the ‘Small Business Jobs Act of 2010‘, you should have a better understanding on how to save yourself some money. If you found this post useful, please ‘Retweet’ it & ‘Share’ it.

Due to the economic U.S. situation, many people are pondering starting a home business?? So let me help you out a bit and explain why a person would, of course, WANT to start a home business. In this article blog post I will explain about the benefits of having a home business as it relates to your taxes via the  New Small Business Jobs Act 2010 That Puts More Capital in the Hands of Entrepreneurs and Small Business Owners…

Small Business Jobs Act of 2010

A. September 27, 2010

On this date, President Obama signed a package of enhanced business tax incentives into law, as part of a larger Small Business Jobs Act of 2010. ONE of the things it allows is that START UP COSTS…up to $10,000.00 can be EXPENSED 100% for new businesses that ‘started’ in 2010!

Generally Start Up Costs are expenses one incurs BEFORE actually opening the doors of a new business!

Maybe you hooked up w/a new nutritional products business and encountered a BUNCH of expenses BEFORE you actually STARTED “WORKING” the business…as a “business”! Stuff you did to “get ready to roll”!

Maybe you just signed up this month! And are in the process of preparing to attack the market full bore after the 1^st of the January!

Startup expenses are things associated with setting up your business. Among the items that count as startup expenses:

o        Paying for consultants & other Professional Fees (Someone to Help Set Up Records, coach you on tax issues related to small business, etc)

o        Initial “Sign Up” Fees

o        Buying initial supplies (Including, but not limited to Extra Product {to use as Samples, Displays, Promotional Gifts}, Starter Packs, Ad Packs, Additional MAP-Books, Branded Apparel, and other Marketing Tools)

o        Advertising materials for your new business (Business Cards & Stationery)

o        Paying employees before the business opens (Even the KIDS)

o        Office Expenses (Furniture, Computer/Printer-Fax-Scanner along with supplies for them, Laptop, Internet connection, Decorating/Remodeling the “new” office, New Digital Overhead Projector & Accessories, Subscriptions to “Virtual” online services related to your business, etc)

o        New Cell Phones

o        Signage for the vehicles

o        Seminars and Workshops attended BEFORE you “signed up”, INCLUDING travel to and from them. (Mileage, Air Fares, Taxi Fees, etc.)

You can “plug” the TOTAL of ALL these Costs in as “Initial Startup Costs” on the “Other Deductions” portion of your Schedule C Tax Form!

In Part 2, I will explain about the benefits of the Small Business Jobs Act of 2010 as it relates to Health Care Insurance.

If this post about the Small Business Jobs Act 2010 has helped you, please ‘Retweet’ it or facebook ‘Share’ it.