Impact of Recent Tax Legislation on Small Business

  • Howard R. Tool San Diego State University
  • James E. Williamson San Diego State University
  • Gerald E. Whittenburg San Diego State University

Abstract

This paper discusses selected changes in the tax laws, made in the Summer of J 996, which are expected to have significant impact on small businesses.  The general areas discussed are 1) S Corporations, 2) SIM PLE pension plans, 3) independent contractors, 4) leased employees, 5) expensing qualified small business assets, 6) the work opportunity tax credit, 7) life insurance policy loans, and 8) medical savings accounts. In each case, we first discuss the basic importance of the issue to small business and then briefly discuss some of the technical issues involved in applying the new laws.

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References

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5. § 1361(b)( l )(A).
6. § 1361(c)( I ).
7. § 1361(c)(2)(A)(v).
8. § 1361(b)(l )(B).
9. § 1361(b)(3).
IO. § 1362(1).
1 1. § 1377(a)(2).
12. § I 362(g).
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14. § 408(p)( I ).
15. § 408(p)(2)(A)(ii).
16. § 408(p)(2)(B).
17. § 408(p)(3).
18. § 72(t)(6).
19. § 408(p)(5)(C).
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21. § 401(k)( l l )(B).
22. For Example see I RS Pub. I 5A.
23. Taxpayers may not rely on a prior audit for tax years after 1 996 unless the audit examined the
employment tax status of the workers involved.
24. Revenue Act of 1978, § 530(a)(2). 25. Revenue Act of 1978, § 530(e)(3).
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30. § 179(b)( I ).
31 . Betty's taxable income has to be at least $1 8,000 for her to get the 1997 maximum expense allowance.
32. § 264(a)(4).
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Published
1997-06-16
How to Cite
TOOL, Howard R.; WILLIAMSON, James E.; WHITTENBURG, Gerald E.. Impact of Recent Tax Legislation on Small Business. Journal of Small Business Strategy, [S.l.], v. 8, n. 2, p. 79-91, june 1997. ISSN 2380-1751. Available at: <https://libjournals.mtsu.edu/index.php/jsbs/article/view/371>. Date accessed: 22 apr. 2019.
Section
Articles

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