Tax Relief for New Businesses: Increased Deductions and Simplification
This law makes it easier for new businesses to deduct initial costs, such as startup expenses. It increases the amounts that can be immediately deducted, which could mean lower taxes for entrepreneurs at the beginning. It also simplifies the rules for accounting for these expenses, which should make bookkeeping easier.
Key points
Increase in the immediate deduction amount for business startup costs from $5,000 to $50,000.
Increase in the threshold at which the deduction is phased out, from $50,000 to $150,000.
Simplification of rules for deducting startup and organizational expenses by consolidating them into one category.
Introduction of special rules for net operating losses related to startup and organizational expenses, potentially helping businesses during difficult times.
Introduced
Citizen Poll