by Jerry Bazata
GREAT news for DJs! President Obama signed into law a “2010 Small Business Jobs Act” that provides a wide assortment of tax breaks and incentives for small businesses.
Although the bounty on the buffet table is plentiful, there are four main dishes you need to focus on BEFORE year’s end:
Enhanced Small Business Expensing (Section 179 expensing)
Equipment, machinery and off-the-shelf software purchased in 2010
You can write-off the full purchase price of those items up to a limit of $500K rather than taking the standard deprecation deduction allowed by the IRS.
You can also include certain real property acquisition and improvements, including leasehold improvements to your office or warehouse space.
Boosted Deduction for Start-Up Expenditures
If you started a mobile DJ service in 2010, you can deduct up to $10K on your taxes as a business start-up expenditure.
Cell Phones Removed from Listed Property Category
Cell phones now can be deducted or depreciated like other business property without erroneous record-keeping.
Health Insurance Deductions
Business owners and their families can deduct the cost of their 2010 health insurance in calculating their 2010 self-employment tax.
Fee-Reduced SBA Loans
The Small Business Association now has fee-reduced loans for DJ business owners who want to buy new gear or expand their services. Thanks to the congressional passage of HR 5297, this economic incentive is being offered until Dec. 31st.
The Perfect Storm for Investing & Expansion
I cannot emphasize strongly enough – DO NOT let this opportunity pass you by! When you combine all of the above incentives along with historically low rates on loans and credit cards, NOW is the “Perfect Storm” to make the investment in new equipment or expand your current operations.
There are currently many deals available at DJ equipment retailers like my preferred supplier, IDJNOW.
Carpe Diem my DJ bretheren!
Jerry Bazata – “Money Answer Man”
|Jerry Bazata (Maine’s DJ Jaz) has over 25 years of experience as a professional DJ entertainer. His firm, J & J Marketing and Entertainment, is a leading consultant to the event planning and music industries. Jerry is a published author and is recognized nationally as an authority on the disc jockey business. He is also Senior Vice President of a global financial institution. To learn about Jerry’s DJ company, visit MaineDiscJockey.com and you can email him at Jerry@mainediscjockey.com.View posts by Jerry|