Expanded NOL's, Section 179 Deduction & Bonus Depreciation
There are several tax incentives small businesses may take advantage of this tax season, before the October 15th deadline (for those who received an extension). The Worker, Homeownership, and Business Assistance Act of 2009 expanded the Net Operating Loss (NOL) Carryback option, while the American Recovery and Reinvestment Act of 2009 increased the Section 179 Deduction and extended the bonus depreciation. These tax incentives may be especially helpful for contractors and other small business owners who have been hurt by the economy. Expanded Net Operating Loss Carryback Businesses and contractors that have suffered net operating losses (NOL) now have greater flexibility in carrying the loss back to a prior year to get a tax refund. These net operating loss provisions allow businesses to carry the loss back three, four, or five years, or a loss from operations for four or five years, in order to offset taxable income in the preceding taxable years. (An NOL can typically be carried ba