| For Immediate Release: | Contact: | Kristin Oberlander
(202) 466-2100
[email protected]
Twitter: NASEtweets
|
NASE Calls For Greater Emphasis On Self-Employed Businesses
Washington, D.C., February 3, 2012 – The NASE’s recent call to Congress to heed the Self-Employed Agenda focusing on taxes was heard this week in the Senate. Senators Olympia Snowe (R-Maine) and Mary Landrieu (D-La.) introduced the Small Business Tax Extenders Act of 2012, which would continue some popular tax breaks for the self-employed and micro-businesses (10 or fewer employees) for an additional two years.
The bill includes the following provisions:
- Self-Employed Health Insurance Deduction – Whereas sole proprietors used to be the only business entity that could not deduct their health insurance costs as a business expense, the extension of this immensely popular provision would include 2012 and retroactively includes tax year 2011.
- Startup Deduction for New Businesses – The self-employed can deduct up to $10,000 of their startup costs on their taxes. If left to expire, the deduction will reduce to $5,000.
- Section 179 Increased Expensing – Micro-businesses can expense 100 percent of their equipment in the first year, up to $500,000.
- Extension of 5-Year Carryback – The self-employed have the ability to report a loss in income tax for 5 previous years.
- AMT Exemption for Small Businesses – The Alternate Minimum tax has never been adjusted for inflation, so this extender helps ensure that business owners do not get heavily taxed at decades-old levels.
“On behalf of the self-employed and micro-business owners, we applaud Senators Snowe and Landrieu for the continued support for the nearly 22 million Americans that would benefit from these tax extenders,” commented
Katie Vlietstra, NASE Director of Government Affairs, “At a crucial time in our economy’s recovery, these tax deductions will allow the self-employed to expand their businesses which in turn supports their local and state economies. NASE will continue to fight for tax equity for the self-employed, this being a crucial first step.”