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Small Business Jobs Act of 2010

By: Patrick Barker On September 27, 2010, President Obama signed into law the Small Business Jobs Act of 2010.  The bill includes many provisions targeted to assist small business operations as well as several revenue-raising provisions.  Selected provisions are discussed below:  Small Business Tax Relief  Section 179 Expensing:  For 2010 and 2011, the maximum Section…
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Homebuyer Credit Closing Date Extended

On Friday, July 2, the President extended the closing deadline for the first-time homebuyer credit to September 30, 2010. Previously, the deadline to close was June 30, 2010 for an eligible homebuyer who entered into a binding contract on or before April 30, 2010.

Mortgage Rates are still at historic lows – Is it time to refinance?

Currently, rates for a 30 year conventional mortgage are approximately 4.875 (15yr, 4.25) with no points or origination. Also, the market for jumbos (over $417,000) has recovered somewhat making an upper bracket purchase or refinance much easier.

Many consumers have home equity loans which originated before lending institutions included interest rate floors in the terms. While it’s great to be paying 2.5%, sooner or later rates will begin to rise. When they do, the long term rates now available will be a relic of the past.

Even if you decide to keep your current mortgage or home equity arrangement, now is a good time to talk with your banker or mortgage lender and see what alternatives are available. Many institutions are offering refinance deals for current customers.

We solicited comments from a couple of local mortgage lenders:

1099 Rules Change with Healthcare Bill

We wanted to take this time to inform you of some upcoming MAJOR changes to 1099 Information Reporting Laws that were included in the Healthcare Bill. Effective for payments made AFTER December 31, 2011, companies will be required to issue 1099-Misc for all payments. There will no longer be an exemption for corporations. There is…
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Small Business Provisions for the HIRE Act

Two weeks ago President Obama signed into law the HIRE (Hiring Incentives to Restore Employment) into law. Drawing less coverage than the highly publicized healthcare legislation, the HIRE Act provides several tax incentives designed to get businesses hiring the unemployed and making capital purchases. Read full blog for the rundown!

President Signs Haiti Tax Relief Bill

President Obama on January 22 signed legislation that allows U.S. taxpayers making charitable contributions to Haiti relief programs before March 1, 2010, to claim those donations on their 2009 income tax return. The measure would allow phone bills to be used as proof for taxpayers who made their donation via a text message. Under current…
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Deductions for Small Business Health Premiums

Beginning on 2009 returns, Alabama allows an enhanced deduction for small business health insurance premiums. The deduction is allowed for qualifying employers (those with less than 25 employees) and their qualified employees. Qualified employees are defined as an employee who earns no more than $50,000 of wages and reports no more than $75,000 ($150,000 for married filing a joint return) of Alabama adjusted gross income.