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Small Business Tax Credit,
WASHINGTON — The Internal Revenue Service today issued new guidance to make it easier for property management companies, property managers and landlords to determine whether they are eligible for the new health care tax credit under the Affordable Care Act and how large a credit they will receive. The guidance makes clear that property management companies, property managers and landlords receiving state health care tax credits may still qualify for the full federal tax credit. Additionally, the guidance allows to receive the credit not only for regular health insurance but also for add-on dental and vision coverage.
Included in the Affordable Care Act approved by Congress in March and signed into law by the President, small business health care tax credit, which is in effect this year, is designed to encourage property management companies, property managers and landlords to offer health insurance coverage for the first time or maintain coverage they already have.
In general, the credit is available to property managers, property management companies and landlords that pay at least half the cost of single coverage for their employees in 2010. The credit is specifically targeted to help landlords, property managers, property management companies and tax-exempt organizations that primarily employ moderate- and lower-income workers.
For tax years 2010 to 2013, the maximum credit is 35 percent of premiums paid by eligible landlords, property management companies and property managers and 25 percent of premiums paid by eligible employers that are tax-exempt organizations. The maximum credit goes to smaller property management companies, property managers and landlords –– those with 10 or fewer full-time equivalent (FTE) employees –– paying annual average wages of $25,000 or less. The credit is completely phased out for property managers, property management companies and landlords that have 25 FTEs or more or that pay average wages of $50,000 per year or more. Because the eligibility rules are based in part on the number of FTEs, not the number of employees, businesses that use part-time help may qualify even if they employ more than 25 individuals.
Eligible small businesses can claim the credit as part of the general business credit starting with the 2010 income tax return they file in 2011. For tax-exempt organizations, the IRS will provide further information on how to claim the credit.
More information about the credit, including a step-by-step guide and answers to frequently asked questions, is available on the Affordable Care Act page.
This is a blog post for Real Estate Professionals, Investors, Landlord, Property Manager, and Property Management Companies. IRS Offers Details on New Small Business Health Care Tax Credit is brought to you by SimplifyEm Pay Rent Online and Property Management SoftwareYou might also want to read:
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