Small Business Income Deferral Act (H.R. 2284)
Introduced by Congressman Erik Paulsen (R-MN) on May 6th, 2009, the bill amends the Internal Revenue Code to allow individual taxpayers an exclusion from gross income for certain items of partnership and S corporation pass-thru income up to $250,000 ($500,000 for married couples filing joint returns). The bill would:
- Give small businesses the ability to defer taxes on any business income they reinvest in their partnership or S corporation; and
- Ensure that small business owners are taxed only on the profits taken out of their business.