It modifies the existing rules, which are already complex and require knowledge (or diligent research) of the tax code.
Edit: OK, I suppose it's not that obvious. but if you keep reading, you'd see the next part of the law adds a 5 year carryback for certain small business investments, which is basically a retroactive tax credit allowing some small business investors/owners to get a refund of some taxes paid over the last 5 years. Like, say, capital gains from investment in a small business.
That's not a full explanation (or even a meaningful one), just an example of how different provisions can interact to give results that are no obvious when they're taken in isolation. You should read the whole tax section, there's a lot of interesting stuff in it. Reading bits of laws in isolation from their context often gives a misleading or incomplete picture.
Comments
It modifies the existing rules, which are already complex and require knowledge (or diligent research) of the tax code.
Edit: OK, I suppose it's not that obvious. but if you keep reading, you'd see the next part of the law adds a 5 year carryback for certain small business investments, which is basically a retroactive tax credit allowing some small business investors/owners to get a refund of some taxes paid over the last 5 years. Like, say, capital gains from investment in a small business.
That's not a full explanation (or even a meaningful one), just an example of how different provisions can interact to give results that are no obvious when they're taken in isolation. You should read the whole tax section, there's a lot of interesting stuff in it. Reading bits of laws in isolation from their context often gives a misleading or incomplete picture.
Here's some accessible and more detailed information provided by an accounting firm that provides a better overview of ways this law might benefit startups and self-employed hackers: http://www.mohlernixon.com/informed/2010/09/focusing-on-the-...