Home: Message List - Event: What's in the New Stimulus Package?

Event: What's in the New Stimulus Package?

SBOCTeam — Tue, 27 Jan 2009 14:15:49 GMT

It's a new year, with a new presidential administration. Learn about new tax incentives, relief for business losses, and what you need to know about payroll changes. Understand now what they are so you can take advantage of them before it's too late.

Barbara Weltman is one of the nation's leading authorities on taxes and small business and she will be here on February 24 at 2PM EST to answer your questions about the stimulus package.

Barbara will be covering the following key topics:

What are the new tax rules for this year?
Is there relief for business losses?
How will payroll changes affect me and my employees?

About Barbara:

Barbara Weltman is a contributing writer for Inc.com, PINK magazine and New York Enterprise Report, and is a sought-after media commentator who has been featured in The New York Times, The Wall Street Journal, The Washington Post, Reuters, Forbes.com, Marketwatch.com, WABC-TV, Fox News, CNNRadio and CNBC. Barbara is also a top selling author and has written the titles "The Rational Guide to Building Small Business Credit" which features a foreword by Dun & Bradstreet, "J.K. Lasser's Small Business Taxes" and "The Complete Idiot's Guide to Starting a Home-Based Business." For more information on Barbara, please visit http://www.barbaraweltman.com

What's your stimulus package question?

Re: Event Feb 24: What's in the New Stimulus Package?

CommunityTeam — Thu, 26 Feb 2009 13:14:56 GMT

Thanks for a great event Barbara! Community if you miss any of our live events, you can always read the event transcript.

Re: Event Feb 24: What's in the New Stimulus Package for You?

SBOCTeam — Tue, 24 Feb 2009 20:04:08 GMT

Barbara on behalf of the Community I'd like to thank you for sharing your expertise.

Community, if you want to learn more about the stimulus package and get other critical tax tips please visit Barbara Weltman at http://www.barbaraweltman.com.

Re: Event Feb 24: What's in the New Stimulus Package for You?

BigIdeas4Biz — Tue, 24 Feb 2009 19:58:50 GMT

A final point...even though the economy may be a tough business environment now, small business owners, I'm sure, will find creative and new ways to adapt and thrive. Be sure to see whether there are new tax breaks and government programs, as well as tools and products from commercial sources, to help you save money, open new lines of business, and implement your ideas.

Re: Event Feb 24: What's in the New Stimulus Package for You?

BigIdeas4Biz — Tue, 24 Feb 2009 19:53:58 GMT

Another point to note in the recovery package...Small business owners may be able to reduce their estimated tax payments for 2009 (the first one is due on April 15, 2009) as a way to conserve cash. Under the recovery package, individuals (which includes sole proprietors as well as owners of pass-through entities) with adjusted gross income under $500,000 and who derive more than half of their income for the year from a business that employs 500 or fewer employees can avoid federal estimated tax penalties this year if they pay at least 90% of the tax shown on the 2008 federal income tax return. (Check state laws on state estimated tax requirements.)

Re: Event Feb 24: What's in the New Stimulus Package for You?

BigIdeas4Biz — Tue, 24 Feb 2009 19:48:50 GMT

The stimulus package was massive--$787 billion dollars. There are many provisions designed to help consumers, businesses, state and local governments, and others. In the next few weeks, be on the lookout for more information about programs related to this new law. For example, the IRS has set up a page on which it will post relevant new. Go to http://www.irs.gov/newsroom/article/0,,id=204335,00.html?portlet=6. Similarly, there is information on many other government departments' and agencies' websites. I will also be posting developments through my website at http://www.barbaraweltman.com/.

Re: Event Feb 24: What's in the New Stimulus Package for You?

SBOCTeam — Tue, 24 Feb 2009 19:45:59 GMT

Barbara thank you for all the responses. Can you tell the Small Business Online Community what else they should know about the stimulus package?

Re: Event Feb 24: What's in the New Stimulus Package for You?

BigIdeas4Biz — Tue, 24 Feb 2009 19:43:19 GMT

Supplies are deductible now, but when you buy property, such as plants, trash cans, and other items that can be expected to last for more than one year, they are subject to depreciation and their cost usually is recovered over a number of years fixed by the tax law. However, you can elect to expense (fully deduct) the cost of these items (see post #25 for an explanation of first-year expensing). Again, first-year expensing can only benefit you if you're profitable. Otherwise, you'll have to rely on depreciation to deduct some of the cost now and the rest in the future. You can find details about this in my book, J.K. Lasser's Small Business Taxes 2009, or from the IRS in Publication 946, How to Depreciate Property, at http://www.irs.gov/pub/irs-pdf/p946.pdf.

Re: Event Feb 24: What's in the New Stimulus Package for You?

Howard — Tue, 24 Feb 2009 19:36:34 GMT

Barbara I have another question...I made some improvements outside my store. I planted a new tree (at my business expense/not the city) and put out a trashcan for patrons (this is important because I sell lottery tickets in my store). Is my business eligible for any deductions or write-offs?

Re: Event Feb 24: What's in the New Stimulus Package for You?

BigIdeas4Biz — Tue, 24 Feb 2009 19:38:23 GMT

Whether the cost of camera equipment can be expensed (rather than depreciated over a number of years) is answered in post #25. However, you raise another tricky tax issue. When a person has a hobby activity, overall business expenses cannot be deducted in excess of income from the activity. This is called the hobby loss rule. Then, the business-type expenses are not claimed as business deductions reported on Schedule C but rather as miscellaneous itemized deductions on Schedule A (only amounts in excess of 2% of adjusted gross income are deductible). Whether a person is in business or merely engaged in a hobby depends on many factors. If there's a reasonable expectation of making a profit and can show that the activity is run in a businesslike way (you keep good books and records, have a separate business bank account, and a business plan for success), then you are treated as being in business-even if the activity loses money-so you won't be subject to the hobby loss rule. You can also rely on a presumption in the tax law that you're in business and not a hobby if you have profits in three out of five years.