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To: conservative in nyc

What are the tax breaks for "small businesess"?


35 posted on 02/01/2007 3:43:43 PM PST by MrLee
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To: MrLee
I'm not sure what some of this means in English, but here's the title of the small business tax relief sections of the main Senate amendment:

Sec. 201. Extension of increased expensing for small businesses.
Sec. 202. Extension and modification of 15-year straight-line cost recovery for qualified leasehold improvements and qualified restaurant improvements; 15-year straight-line cost recovery for certain improvements to retail space.
Sec. 203. Clarification of cash accounting rules for small business.
Sec. 204. Extension and modification of combined work opportunity tax credit and welfare-to-work credit.
Sec. 205. Certified professional employer organizations.
Sec. 211. Capital gain of S Corporation not treated as passive investment income.
Sec. 212. Treatment of bank director shares.
Sec. 213. Special rule for bank required to change from the reserve method of accounting on becoming S Corporation.
Sec. 214. Treatment of the sale of interest in a Qualified Subchapter S Subsidiary.
Sec. 215. Elimination of all earnings and profits attributable to pre-1983 years for certain corporations.
Sec. 216. Expansion of qualifying beneficiaries of an electing small business trust.

The main bill also included "revenue provisions" - increased taxes or fees that supposedly come from closing loopholes:

Sec. 221. Modification of effective date of leasing provisions of the American Jobs Creation Act of 2004.
Sec. 222. Application of rules treating inverted corporations as domestic corporations to certain transactions occurring after March 20, 2002.
Sec. 223. Denial of deduction for punitive damages.
Sec. 224. Denial of deduction for certain fines, penalties, and other amounts.
Sec. 225. Revision of tax rules on expatriation of individuals.
Sec. 226. Limitation on annual amounts which may be deferred under nonqualified deferred compensation arrangements.
Sec. 227. Increase in criminal monetary penalty limitation for the underpayment or overpayment of tax due to fraud.
Sec. 228. Doubling of certain penalties, fines, and interest on underpayments related to certain offshore financial arrangements.
Sec. 229. Increase in penalty for bad checks and money orders.
Sec. 230. Treatment of contingent payment convertible debt instruments.
Sec. 231. Extension of IRS user fees.
Sec. 232. Modification of collection due process procedures for employment tax liabilities.
Sec. 233. Modifications to whistleblower reforms.
Sec. 234. Modifications of definition of employees covered by denial of deduction for excessive employee remuneration.

There were also a handful of amendments to that amendment that also passed - I haven't compiled what those amendments contained. One was to establish a small business child care grant program through block grants to states. Another had something to do with renewal grants for women's business centers.
50 posted on 02/01/2007 4:33:27 PM PST by conservative in nyc
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