NEW EXTENDED DEADLINE! Congress has passed and the President has signed the Tax Increase Prevention Act of 2014. The following provisions which expired December 31, 2013 have been extended through December 31, 2014 only. Tax extenders for Business: · 50 percent bonus depreciation to property acquired and placed in service during 2014. · Increased small business expensing limitation and phase-out amounts for property placed in service during 2014 ($500,000 and $2 million respectively; without the extension the amounts would be $25,000 and $200,000, respectively). The special rules that allow expensing for computer software, qualified leasehold improvement property, qualified restaurant property, and qualified retail improvement property also are extended through 2014. · Research and development tax credit, which generally allows taxpayers a 20 percent credit for qualified research expenses or a 14 percent alternative simplified credit. · 15-year straight-line cost recovery for qualified leasehold improvements, qualified restaurant buildings and improvements, and qualified retail improvements. · Enhanced charitable deduction for contributions of food inventory. · Reduction in S-corporation recognition period for built-in gains · New markets tax credit. · Work opportunity tax credit. Tax extenders for Individuals: · Exclusion from gross income from the discharge of qualified principal residence indebtedness. · Continue the treatment of qualified mortgage insurance premiums as interest for purposes of the mortgage interest deduction. This deduction phases out ratably for taxpayers with adjusted gross income between $100,000 and $110,000 (half those amounts for married taxpayers filing separately). · Exclusion from gross income of qualified charitable distributions from IRAs of individuals at least 70 1/2 years of age. The exclusion is for up to $100,000 per taxpayer per year. · Above-the-line deduction for higher education expenses. · Deduction for expenses of elementary and secondary school teachers. · Deduction for state and local general sales taxes. · Special rules for contributions of capital gain real property made for conservation purposes. If you need assistance with any of this, give our office a call! (336) 712-1788
Posted on: Mon, 22 Dec 2014 23:38:47 +0000
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