Small business tax hacks

Congress is considering two bills that aim to get more cash into small business owners' hands.

EMAIL  |   PRINT  |   SHARE  |   RSS
 
google my aol my msn my yahoo! netvibes
Paste this link into your favorite RSS desktop reader
See all CNNMoney.com RSS FEEDS (close)

Grassroots stimulus
Using $2 bills and "buy local" promotions, these 6 towns have launched their own campaigns to keep local businesses alive.
How has Wall Street responded to last year's collapse of Lehman Brothers?
  • Made significant changes
  • Some reform, but more needed
  • Business as usual
  • It's gotten worse

(Fortune Small Business) -- Two bills introduced on Capitol Hill in July aim to revise the tax code and get more money flowing into small business coffers.

Free lunch? A bill from Rep. Neil Abercrombie, D-Hawaii, would raise the deductible percentage of business meals from 50% to 80%.

This could be a boon for America's restaurants, 70% of which are small businesses. The National Restaurant Association says the bill could boost business meal sales by $6 billion a year. It would also help frequent lunchers: Restaurants are the top destinations for entrepreneurs meeting outside their offices, and two-thirds of all business meal deductions are by small business owners.

Jump Start. The Small Business Jump Start Act, introduced by Sen. Jeff Merkley, D-Ore., and Sen. Lamar Alexander, R-Tenn., would allow a small business to deduct $10,000 of startup expenses in the first year if its total costs are less than $60,000; those limits are currently set at $5,000 and $50,000, respectively.

"This makes sure you get money back into the business when you really need it -- up front," says Bill Rys, tax counsel for the National Federation of Independent Business.

But, he notes, Congress has a crowded fall schedule, and the bill would have the effect of cutting revenue for a government that is running deficits. Rep. Frank Kratovil, D-Md., introduced a similar bill, with a $20,000 deduction limit, in the House of Representatives in March. To top of page

To write a note to the editor about this article, click here.




QMy dream is to launch my own business someday. Now that it's time to choose a major, I'm debating if I should major in entrepreneurial studies or major in engineering to acquire a set of skills first. Is majoring in entrepreneurship a good choice? More
Get Answer
- Spate, Orange, Calif.
Sponsors
Five things to know about Putin's Russia An economic crisis, Western sanctions and a comeback currency: What's going on in Russia? More
9 up-and-coming collectible cars They're relatively cheap now but these models have already caught collectors' eyes and are expected to increase in value in years to come More
How I got into an Ivy League school These twelve high school students share what it took to get accepted into Ivy League schools. More
Worry about the hackers you don't know 
Crime syndicates and government organizations pose a much greater cyber threat than renegade hacker groups like Anonymous. Play
GE CEO: Bringing jobs back to the U.S. 
Jeff Immelt says the U.S. is a cost competitive market for advanced manufacturing and that GE is bringing jobs back from Mexico. Play
Hamster wheel and wedgie-powered transit 
Red Bull Creation challenges hackers and engineers to invent new modes of transportation. Play