Eligible small businesses under both the SBJA and the PATH Act include partnerships, sole proprietorships, and non-publicly traded corporations with no more than $50 million in average annual gross receipts over the preceding three tax years.
The primary difference between the SBJA and the PATH Act is that, while the SBJA's AMT exemption applied to all Sec.
110) However, as aforementioned, the SBJA of 2010 did temporarily authorize a 504 refinance program that permitted small businesses to refinance property without requiring expansion.
Another suggestion to help return the CDC/504 loan program to its zero-subsidy form is to reinstate the 504 loan refinance program that the SBJA of 2010 temporarily allowed until September 27, 2012.
In addition, SBJA increases the maximum amount that a taxpayer may write off under IRC section 179 and also increases the phase-out threshold amounts for taxable years ending in 2010 or 2011.
Under SBJA, the expanded IRC section 179 deduction will end in 2011, and the deduction will return to $25,000; the phase-out amount would have returned to $200,000, beginning in 2012.
Additional First-Year Depreciation: SBJA and TRA Extensions
The SBJA extended the deduction for one more year to include assets purchased in 2010.
Practitioners with S corporation, REIT, or RIC clients should pay close attention to the possible relief from the BIG tax offered by the SBJA
did not address the nuts and bolts of the new option, however, leaving a number of questions unanswered.