Attention Real Estate Brokers…Do you know about the Small Business Jobs and Credit Act? According to CIT Group, only 48% of small businesses have even heard of the legislation despite the US Small Business Administration (SBA) statement that it is “the most significant piece of small business legislation in over a decade”.
There are two important “power tools” hidden in the act that we want to make sure you don’t miss.
1. More Cash
“The new law puts more capital in the hands of Entrepreneurs and Small Business Owners.” (SBA) The maximum loan size for small business loans has more than doubled from the previous limit! There are temporary increases to loan limits, as well as permanent increases in the maximum size for SBA’s loan programs.
2. Tax Breaks
- Eight tax breaks that are already in effect:
- Zero taxes on capital gains from key small business investments
- Extension and expansion of small businesses’ ability to immediately expense capital investments
- Extension of 50% bonus depreciation
- A new deduction of health insurance costs for self-employed
- Tax relief and simplification for cell phone deductions
- An increase in the deduction for entrepreneurs’ start-up expenses
- A five-year carryback of general business credits
- Limitations on penalties for errors in tax reporting that disproportionately affect small business
These are just a few ways the legislation can help an enterprising owners of real estate firms if they are aware of what is available to them.
What do you think about this assistance for your real estate business? Will you take advantage of the tools in the legislation?