Monday, May 21, 2012

Just in from Washington

Farm Bureau Urges Senate to Support Tax Extenders
Washington--The American Farm Bureau Federation and 25 other business groups wrote Senate leaders today in support of a bill to extend several small business tax provisions.

The Small Business Tax Extenders Act (S. 2050), sponsored by Sens. Olympia Snowe (R-Maine) and Mary Landrieu (D-La.), would extend increased deductions and longer depreciation times for small businesses’ equipment purchases and other business expenses. The bill also would provide tax equity to self-employed businesses by expanding the deductibility of health insurance to apply to employment taxes.

“Health care costs remain the top concern for small business, and this provision helps the self-employed save money on their health care costs, thus freeing up their ability to invest in other expenses and investments,” the groups wrote.
By reducing the gains-holding period for S corporations, the groups wrote, the bill would grant relief to those corporations by increasing their access to capital. When businesses convert from C corporations to S corporations, they have been required to hold their appreciated assets for up to a decade to avoid tax penalties.

The bill also would allow new businesses to deduct up to $10,000 of their start-up costs and extend Alternative Minimum Tax relief.

“As you look for opportunities to help small businesses create jobs and invest in their businesses and communities, we encourage you to pass S. 2050 as soon as possible,” the groups wrote to Senate Majority Leader Harry Reid (D-Nev.) and Minority Leader Mitch McConnell (R-Ky.).

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