Some disappearing tax deductions: Tuition and Fees Deduction IRC Sec. 222 What it is now: Individuals can claim an above-the-line deduction for tuition and fees for qualified higher education expenses. What happens in 2014: Expires on Dec. 31, 2013 Section 179 -- Deduction Limit IRC Sec. 179(b), (c) and (d) What it is now: The Section 179 deduction and qualifying property limits are $500,000 and $2,000,000, respectively. In addition, off-the shelf computer software qualifies for Section 179 expensing and taxpayers can amend or irrevocably revoke a Section 179 election. What happens in 2014: After 2013, the deduction and qualifying property limits are $25,000 and $200,000, respectively. Off-the-shelf software does not qualify for Section 179 expensing and the election generally is irrevocable with IRS consent. Section 179—Qualified Real Property IRC Sec. 179(f) What it is now: Taxpayers can claim the Section 179 deduction on up to $250,000 of qualified real property (qualified leasehold improvements, qualified restaurant property and qualified retail improvement property). What happens in 2014: Qualified real property is not eligible for Section 179 expensing. Special (Bonus) Depreciation IRC Sec. 168(k) What it is now: 50% special depreciation is allowed for qualified property additions placed in service in 2013. (Note: For 2013, the Section 280F limit on depreciation for passenger autos is also increased by $8,000 for qualified property and no AMT adjustment applies to property for which the special depreciation allowance is claimed.) What happens in 2014: Special deprecation only available for long production-period property and certain aircraft. And some provisions that are changing include: • The tax credit for alternative fuel vehicle refueling property • The Sec. 170(e)(3) donation of food inventory deduction • The monthly exclusion for transit passes and vanpooling • The Sec. 374(d)(7) S corp built-in gains provision • The Sec. 1367(a)(2) S corp shareholder basis adjustment for charitable contributions provision Courtesy of TaxPro Today
Posted on: Mon, 26 Aug 2013 22:18:16 +0000
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