Posts Tagged ‘self-employed’

Home Office Deduction Simplification Bill Introduced by Congress Today

Written By National Association for the Self-Employed, May 13, 2011

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Bill Would Create Optional Standard Deduction

The National Association for the Self-Employed (NASE) is thrilled to lend support to legislation introduced today by Congressmen Kurt Schrader (D-OR) and Ron Kind (D-WI) which would simplify taxes for millions of small business owners. 

The Home Office Deduction Simplification Act, HR. 1827, would allow home-based businesses to take a standard $1,500 deduction for home office expenses. According to an NASE study, more than half of small businesses are based out of a home office.

“Too many home-based business owners who are eligible for the home office deduction elect not to take it because of the complexity of the form and calculations required,” said Kristie Arslan, Executive Director of the National Association for the Self-Employed (NASE). “This means valuable tax refund dollars that could be invested back into the business are left on the table each year. The creation of an optional standard deduction will go a long way in easing the minds of these cautious business owners. The fact that this bill ensures that the standard deduction will be adjusted for inflation also ensures that future businesses will be able to take advantage of this tax benefit for years to come.”

“I’ve built two small businesses from scratch,” said Schrader. “And I can tell you from experience that the complexity of our tax code hinders business growth. By making it easier for Oregon small businesses to pay their taxes you can encourage them to expand their operations and hire more workers – and job creation is exactly where Congress should be focusing our time right now.”

“Small businesses are the backbone of our economy,” said Kind.  “They are generating two out of every three jobs right now, serve as important anchors in our communities, and are vital to our economic recovery.  It is critical that we help these economic engines by providing the resources and tax credits to make it easier and fruitful to own and maintain a small business during this tough time.  I will continue working to provide the resources our small businesses need to grow, hire, and drive dollars back into our local communities.”

Schrader and Kind introduced similar legislation in 2009 with Republican co-sponsors. However that legislation remained in committee when Congress adjourned. This year’s version, H.R. 1827, was referred to the Committee on Ways and Means for consideration.

 

The National Association for the Self-Employed (NASE) is the nation’s leading resource for the self-employed and micro-businesses, bringing a broad range of benefits to help entrepreneurs succeed and to drive the continued growth of this vital segment of the American economy. The NASE is a 501(c) (6) nonprofit organization and provides big-business advantages to hundreds of thousands of micro-businesses across the United States. For more information, visit the association’s Web site at www.NASE.org.

 

Tax Time: Deducting The Business Use Of Your Automobile

Written By National Association for the Self-Employed, March 4, 2011
Small Biz Owners Often Overlook This Important Deduction
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Business expenses come with the territory when you are an entrepreneur. Some expenses, however, can be easy to miss come tax time because they do not show up in your business checkbook. Use of your car for driving to client meetings, the office supply store, the post office and more are deductible expenses because you are using your vehicle for business purposes.

Here are a few tips from the National Association for the Self-Employed (NASE) to remember in regard to deducting expenses for business use of your automobile:

  • The Standard Mileage Rate is 50 cents per mile driven for business in 2010.
  • If you would rather calculate by hand, use the Actual Expense Method. Manually calculate costs of maintaining and driving the car as a percentage of total miles driven for business.
  • Calculate both to see which gets you the better deduction.

“The main thing the IRS will want to see in supporting this deduction is your mileage log.” says NASE National Tax Advisor Keith Hall. “You must keep track of the miles you drive for business, whether it’s on your computer or handwritten in a notebook.”

The NASE iPhone application TripAlly tracks, calculates and records miles driven to create the ultimate tax-deduction mileage log. Whether you need to track miles for your small business, charitable contributions, for employee reimbursement, or simply because you want to know, TripAlly can help. Download TripAlly at the iTunes App Store.

 Click here for more details on TripAlly.

  

About the NASE

The National Association for the Self-Employed (NASE) is the nation’s leading resource for the self-employed and micro-businesses, bringing a broad range of benefits to help entrepreneurs succeed and to drive the continued growth of this vital segment of the American economy. The NASE is a 501(c) (6) nonprofit organization and provides big-business advantages to hundreds of thousands of micro-businesses across the United States. For more information, visit the association’s Web site at www.NASE.org.

 

Senate Passes Landmark Small Business Jobs Creation Bill

Written By U.S. Senate Committee on Small Business and Entrepreneurship, September 17, 2010

Landrieu-sponsored legislation will increase access to capital to America’s small businesses.

WASHINGTON – The United States Senate yesterday passed a landmark small business jobs bill that aims to boost billions of dollars of lending and investment to America’s entrepreneurs and provides $12 billion in tax cuts to small businesses from coast to coast.  In addition, recognizing that less one percent of small businesses export, this small business bill expands trade and export opportunities, a real growth area for the near term.  Finally, the bill increases small business access to Federal contracts and expands counseling and technical assistance programs by partnering with hundreds of non-profits throughout the country.  The bill passed the Senate by a significant majority, 61-38, with Senators George Voinovich, R-Ohio, and George LeMieux, R-Fla., joining Democrats in passage of the bill.  United States Senate Committee on Small Business and Entrepreneurship Chair Mary L. Landrieu, D-La., made the following comment on the passage of the bill:

            “The passage of this bill is a long-awaited victory for the 27 million small businesses in America.  Upon signature by the President, these businesses will benefit from $12 billion in immediate tax cuts.  $12 billion will transfer from the Federal treasury into the hands of small business owners to help them navigate these difficult financial times.  It is the right thing to do and the smart thing to do.  We could not have passed this legislation without the leadership of the Majority Leader, Harry Reid, Senators Cantwell, Boxer and Merkley and the entire Democratic Caucus who fought so hard for this legislation.”

            “Specifically, we owe a special thanks Senators George Voinovich and George LeMieux for crossing the aisle and putting the country ahead of partisan politics.”

Specifically, the Small Business Lending Act will:

Provide $12 Billion in Targeted Tax Cuts for Small Businesses

  • Allows for a 100 percent exclusion of capital gains tax on small business investments made in 2010
  • Increases the maximum deduction for start-up expenditures in 2010 and 2011 from $5,000 – $10,000
  • Extends the American Recovery and Reinvestment Act bonus depreciation provision for 1 additional year for qualifying property purchased and placed into service in 2010
  • Allows self-employed taxpayers to deduct health care costs for payroll tax purposes on 2010 returns

Initiate a New Strategic Partnership with Healthy Community Banks

  • Creates a $30 billion Small Business Lending Fund that utilizes healthy community
    banks as a conduit to increase lending to small business, a provision that will generate $1 billion for the treasury.
  • Provides $1.5 billion in grants to support at least $15 billion in new small business
    lending through already successful state run programs  

Strengthen the Core SBA programs

  • Extends certain SBA American Recovery and Reinvestment provisions that eliminate borrow fees and increases the government guarantees on SBA loans from 75 percent to 90 percent.
  • Permanently increases loan limits on SBA loans
  • Expands the SBA’s trade and export finance programs

 

“25 Million Jobs And Billions To The Economy Is Not So ‘Bunny’”

Written By National Association for the Self-Employed, June 18, 2010

bunnyHeroThe National Association for the Self-Employed (NASE) launched a digital advertising campaign this week that seeks to raise awareness of the policy priorities of the self-employed and micro-businesses while combating the stereotype that the nation’s smallest businesses  do not make serious contributions to the economy. The ads, which are running on inside-the-beltway news Web sites, depict a self-employed business owner wearing a suit, tie…and bunny slippers.

“We are undertaking this public awareness effort to shake up the unfortunate perception that if you are your own boss and work from home, your job is not as valuable as an office or factory job,” says Kristie Arslan, executive director of the legislative offices of NASE. “Not only do the self-employed contribute nearly a trillion dollars to our nation’s economy every year, but their businesses allow them to successfully provide for their families and contribute to their local communities.”

The vast majority – 95% – of all small businesses in the United States are either self-employed entrepreneurs or micro-businesses with fewer than 10 employees. There are about 25 million such businesses, which may have a storefront or be run out of a home office. Their small size makes them acutely aware of economic conditions and policy changes.

Though vulnerable to tough economic times, self-employed businesses have grown faster than all other segments of the economy in recent years and are historically a key driver of economic recovery after a recession. In fact, business startups reached their highest levels in 14 years during 2009, suggesting that laid-off workers are choosing to join the ranks of the self-employed rather than take their chances in a job market that remains unstable.

“With a growing number of Americans embracing entrepreneurialism, Washington should be finding ways to support self-employment and help them drive the country’s economic recovery,” continues Arslan. “Instead, we see a systemic behavior by our policymakers of publicly touting the importance of small business in this economic climate while they quietly issue backdoor rules and regulations that are ultimately pulling the rug out from under America’s entrepreneurs.”

Some examples of current policy issues that have dramatic negative impacts on the self-employed include:

  • New IRS reporting requirements that will force any business that pays more than $600 per year to a vendor for business services, inventory or property to issue a Form 1099 to that vendor;
  • Continued lack of a standard home office tax deduction that would allow millions of self-employed individuals access to tax relief to which they are entitled; and
  • Exclusion from the small business health care tax credit in the recently passed health reform law if you are self-employed or hire family members in your business, leaving the self-employed to face skyrocketing health care costs in the years ahead.

NASE’s “bunny slippers” campaign includes members of the organization, including a tax accountant, a graphic designer and a disc jockey. To learn more about the campaign and NASE’s legislative priorities, please visit http://www.NASE.org/campaigns/NotSoBunny.

 

The National Association for the Self-Employed (NASE) is the nation’s leading resource for the self-employed and micro-businesses, bringing a broad range of benefits to help entrepreneurs succeed and to drive the continued growth of this vital segment of the American economy.

For more information visit the website for the National Association for the Self-Employed: www.nase.org