Small Business Jobs Act of 2010

Last month, President Barack Obama signed into law the Small Business Jobs Act of 2010 (HR 5297). The bill expands loan programs through the U.S. Small Business Administration (SBA), strengthens small business preference programs for federal government projects, provides incentives for exporters, offers a variety of small business tax breaks and includes some revenue raisers.

Among other things, the Act:

• extends bonus depreciation
• extends and doubles code section 179 expensing
• provides for 100% gain exclusion for qualified small business stock
• relaxes the S corp built-in gain conversion rules
• allows a 5 year carryback of the general business credit for qualified taxpayers
• removes cell phones from the listed property rules
• enhances the deduction for start-up expenses
• allows a self-employed health insurance to be deducted from self-employment income in calculating S/E tax

 and (drum roll please...)

• The bill makes the 1099 filing rules applicable to landlords , starting in 2011.  Although there will be exceptions, as written, the bill requires qualified individuals receiving rental income from real property (think beach house) to file information returns (1099 Misc) with the IRS and to service providers (think plumber) reporting payments of $600 or more during the year for rental property expenses.  Temporary rentals of a primary residence are exempted.

There's nothing like drowning in paperwork!  Although we have to take the good with the bad, let's hope that one gets repealed.