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Tag Archives: HEALTH INSURANCE
IRS Patrol: IRS Releases Draft W-2 Form for 2011; Announces Relief for Employers (Optional Reporting of the Cost of Health Coverage in 2011)
engraving of the US Treasury building in 1804
Stacie says: Doesn’t good news come in three’s? Well here is good news number two for the day – the IRS announced that it will defer the new requirement for employers to report the cost of coverage under an employer-sponsored group health plan. The reporting is now optional in 2011.
WASHINGTON — The IRS today issued a draft Form W-2 for 2011, which employers use to report wages and employee tax withholding. The IRS also announced that it will defer the new requirement for employers to report the cost of coverage under an employer-sponsored group health plan, making that reporting by employers optional in 2011.
The draft Form W-2 includes the codes that employers may use to report the cost of coverage under an employer-sponsored group health plan. The Treasury Department and the IRS have determined that this relief is necessary to provide employers the time they need to make changes to their payroll systems or procedures in preparation for compliance with the new reporting requirement. The IRS will be publishing guidance on the new requirement later this year.
Although reporting the cost of coverage will be optional with respect to 2011, the IRS continues to stress that the amounts reportable are not taxable. Included in the Affordable Care Act passed by Congress in March, the new reporting requirement is intended to be informational only, and to provide employees with greater transparency into overall health care costs.
HR 5297 Small Business Jobs Act of 2010 Outline of Tax Stuff
Image by Biggunben via Flickr
By Stacie Clifford Kitts, CPA
Well loyal readers, I am finally getting around to outlining the tax aspects of the Small Business Jobs Act. Because I am a visual interactive learner, writing and organizing helps me to retain information. I guess you could say that blogging is like a study technique for me. Too bad it doesn’t qualify for continuing education credit. *sigh* oh well.
Fixed asset expensing – Section 179
- Maximum expense amount $500,000
- Phase out amount $2 million for years 2010 and 2011
Fixed asset bonus depreciation – Section 168(k)
- Extended through 2010
- Percentage of completion method can be taken into account for qualified property
Qualified small business stock – Section 1202
- Increases the gain exclusion from the sale or exchange of qualified small business stock to 100%
- Applies to eligible stock acquired after the enactment date and before Jan 1, 2011
Business credits – Section 38
- Is extended to five years
- Can be used to offset regular and alternative minimum tax
- Tax years beginning after 2009
Built in gains – Section 1374
- Recognition period for computing built in gains tax is the five year period beginning with the first day of the fist tax year for which the corporation was an S Corporation.
Health insurance for self employed individuals
- (This is a particularly good one) For tax years ending after 2009, self employed individuals can deduct health insurance for themselves, their spouses, dependents and children under 27 against net earnings for self-employment for purposes of calculating their SECA taxes ( SECA is equivalent to a workers FICA tax)
Startup expenses – Section 195
- Expenses increased to $10,000 for years beginning in 2010 and 2011
- Limitation on deduction is increased to $60,000
- Calculated by the lessor of 1) the amount of the startup expense or 2) 10,000, reduced (but not below zero) by the amount by which the startup expenditures exceed $60,000
Reportable and listed transactions – penalty under section 6707A
- The penalty for failure to disclose a reportable transaction is limited to 75% of the decrease in tax resulting from the transactions.
- Max penalty for a natural person is $10,000
- Penalty for a non-natural person is $50,000 (so like a business or trust or such)
- Listed transactions maximum penalty will be $100,000 for a natural person
- Listed transactions maximum penalty will be $200,000 for non-natural person\
- Minimum penalty
- $5000 Natural person
- $10,000 Non-natural person
Listed property – Section 280A
- no longer includes cell phone.
Related Articles
- Section 179 Changes in the Small Business Jobs and Credit Act of … (i80equipment.com)
- Section179.Org Reports on Section 179 Changes Contained in the The Small Business Jobs and Credit Act of 2010 (prweb.com)
- “The Small Business Jobs Act of 2010” and related posts (washparkprophet.blogspot.com)
- Obama signs the Small Business Jobs Act (mnn.com)
- President Obama Signs Small Business Jobs Act – Learn What’s In It (whitehouse.gov)
- Passage of Small Business Jobs Act a Huge Win (prnewswire.com)
- Brandon Edwards: Small Business Jobs Act: Real Value to Small Manufacturers (huffingtonpost.com)
- NADCO Celebrates the Signing of the Small Business Jobs Act and the SBA 504 Loan Program Enhancements Included (prnewswire.com)
- ICBA Applauds Passage of Small Business Jobs and Credit Act (prweb.com)
- Kristie Arslan: Senate Wakes Up and Pays Attention to Small Business [Commentary] (huffingtonpost.com)
Stacie's Tax Stuff 