On December 3rd, the Tax Increase Prevention Act was passed by the House of Representatives. This bill would extend some of the many expired tax deductions and credits and make them retroactive for the 2014 tax year. This bill would set them to expire again on December 31, 2014.
Some of the more common expiring provisions that have been extended include:
FOR INDIVIDUALS:
- Deduction for certain expenses of elementary and secondary school teachers
- Exclusion from gross income of discharge of qualified principal residence indebtedness
- Mortgage insurance premiums treated as qualified residence interest
- Deduction of state and local general sales taxes
- Above-the-line deduction for qualified tuition and related expenses
- Tax-free distributions from IRA’s for charitable purposes
FOR BUSINESSES:
- Research credit
- Work opportunity tax credit
- Employer wage credit for employees who are active duty members of the uniformed services
- 15-year straight line cost recovery for qualified leasehold improvements, qualified restaurant buildings and improvements, and qualified retain improvements
- Bonus depreciation
- Increased expensing limitations and treatment of certain real property as Section 179 property
- Exclusion of 100% of gain on certain small business stock
- Basis adjustment to stock of S corporations making charitable contributions of property
- Reduction in S corporation recognition period for built-in gains tax
This list is by no means all of the provisions that were extended. The bill now moves on to the Senate. President Obama said today that the administration is open to a short-term extension, but he has not said whether he would sign the House bill as it was approved. More to come as it evolves…… Stay tuned.
