The Senate finally passed the Tax Extenders Act for 2014…. so you have 13 days left to do it.
Although President Obama has yet to sign it into law, he is expected to by the end of this week.
Here are some of the provisions the team at Hauk Kruse & Associates believe may be important to you:
- Tax-free distributions from individual retirement plan for charitable purposes: IRA owners age 70-1/2 or older may exclude up to $100,000 per year from gross income if IRA funds were paid directly to most public charities.
- Tax deduction for state and local general sales taxes in lieu of state and local income taxes: Taxpayers may deduct state and local general sales taxes paid rather than state and local income taxes paid.
- Section 179 expense increase: Small and mid-size business owners can immediately deduct up to $500,000 of qualifying assets rather than over time according to depreciation schedules.
- Bonus depreciation: The depreciation expense on new business equipment is 50% in the first year, plus regular depreciation on the other 50%.
- Mortgage debt forgiveness: If the bank forgives all or a portion of your qualified personal residence, you do not have to claim it as income through the end of 2014.
- Tax credit for residential energy efficiency improvements (including certain appliances): Homeowners can claim a one-time only energy-efficient home improvement tax credit of up to $500 for the installation of qualified insulation, windows, doors, roofs, water heaters, and heating and air conditioning systems.
- Tuition and fees deduction: Qualifying taxpayers are allowed to claim up to $4,000 in education expenses (tuition, enrollment expenses, attendance expenses, student-activity fees, and books/supplies fees).
- Research and Development credit: The R&D credit has been extended through the end of 2014.
- Deduction for mortgage insurance premiums: Congress allows for a tax deduction for the cost of PMI for homes and vacation homes through the end of 2014.
- Educator expense: Eligible educators will receive a deduction of up to $250 for unreimbursed expenses paid for supplies and equipment used in the classroom.
While the passing of this bill is excellent, it should be noted that this could once again mean a delayed tax season.
For a full list, read the full bill summary at Congress.gov.
If you have any questions, feel free to call us at 314-993-4285 or e-mail us at firstname.lastname@example.org