Obama's Tax Relief for Businesses Explained by Tax Expert Mike Habib in Detail
All you need to know about President Obama's Tax Relief for American Businesses
Los Angeles, CA, March 17, 2009 --(PR.com)-- The American Recovery and Reinvestment Act of 2009 covers a number of changes that will benefit businesses. Tax expert Mike Habib explains the tax relief options in detail to help companies understand how the new law will impact them. The new law addresses a lot of concerns and Habib covered each point at his popular Tax Relief Blog on his website MyIRSTaxRelief.com.
Mike Habib posted the article to provide a more informative resource for tax help to enterprises who may be having a difficult time trying to catch up with their tax obligations. “It's important for business owners, particularly the ones who own small and medium-scale ventures to understand what type of tax breaks they are entitled to,” he explains. “Every business owner will appreciate the extra assurance that the government is working with him towards keeping his company afloat.”
One of the provisions that Habib explained was on the extension of liberal expensing limits. Under this stipulation, qualified companies can deduct costs of equipment used in the business in lieu of recovering the cost via depreciation. The bonus depreciation will also be in effect for one more year. Companies can now take an extra deduction on depreciation costs, which is generally 50% of the original cost of the property.
If a business repurchases its debt for less than its outstanding amount, it will be eligible for tax relief through debt discharge income. Repurchased debt from 2009 to 2010 will result to a debt discharge income that is payable in five years.
To get reliable tax help, Mike Habib also advises business owners to look through the stipulations of the new law. “This will give them a better understanding of how their tax relief concerns should be addressed,” he said. “It's also important for companies to make sure that they are getting proper tax representation when it comes to negotiating tax debt with the IRS. After all, you are not the only one who stands to lose your job when things don't go well with the tax collectors. The livelihoods of the people you employ also rely on the effectiveness of the professional services that you will contract.”
About Mike Habib, EA
Mike Habib is an IRS licensed Enrolled Agent who concentrates his tax practice on helping individuals and businesses solve their IRS tax problems. He is licensed to represent taxpayers in all 50 states. He personally handles and negotiates each case to make sure that clients get the best possible resolution for their particular tax situation.
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Mike Habib posted the article to provide a more informative resource for tax help to enterprises who may be having a difficult time trying to catch up with their tax obligations. “It's important for business owners, particularly the ones who own small and medium-scale ventures to understand what type of tax breaks they are entitled to,” he explains. “Every business owner will appreciate the extra assurance that the government is working with him towards keeping his company afloat.”
One of the provisions that Habib explained was on the extension of liberal expensing limits. Under this stipulation, qualified companies can deduct costs of equipment used in the business in lieu of recovering the cost via depreciation. The bonus depreciation will also be in effect for one more year. Companies can now take an extra deduction on depreciation costs, which is generally 50% of the original cost of the property.
If a business repurchases its debt for less than its outstanding amount, it will be eligible for tax relief through debt discharge income. Repurchased debt from 2009 to 2010 will result to a debt discharge income that is payable in five years.
To get reliable tax help, Mike Habib also advises business owners to look through the stipulations of the new law. “This will give them a better understanding of how their tax relief concerns should be addressed,” he said. “It's also important for companies to make sure that they are getting proper tax representation when it comes to negotiating tax debt with the IRS. After all, you are not the only one who stands to lose your job when things don't go well with the tax collectors. The livelihoods of the people you employ also rely on the effectiveness of the professional services that you will contract.”
About Mike Habib, EA
Mike Habib is an IRS licensed Enrolled Agent who concentrates his tax practice on helping individuals and businesses solve their IRS tax problems. He is licensed to represent taxpayers in all 50 states. He personally handles and negotiates each case to make sure that clients get the best possible resolution for their particular tax situation.
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Contact
Mike Habib, EA Tax Relief Services
Mike Habib, EA
1-877-788-TAXES (1-877-788-2937)
www.myirstaxrelief.com
Mike Habib, EA
1-877-788-TAXES (1-877-788-2937)
www.myirstaxrelief.com
Contact
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