Finally, President Obama into law the Tax Increase Prevention Act of 2014 (HR5771). This Act extends more than 50 tax provisions for 2014. It is important to note that this Act does not make these provisions permanent. The 114th Congress is now left with the responsibility of the extenders for the 2015 tax year.
There are several credits and deductions extended for individuals. Some of which include:
- The optional sales tax deduction on Schedule A
- The higher education deduction
- Exclusion of income from mortgage debt cancellation on a principal residence
- Above-the-line classroom expense deduction for teachers
- Mortgage premium deduction
- Charitable distributions from IRAs
Businesses will also reap the benefits of this Act. Some of the extenders include:
- Bonus Depreciation
- Code Section 179 Expense
- Qualified Leasehold/Retail Improvements, Restaurant Property
- Research Tax Credit
- Work Opportunity Tax Credit
- S-Corps making charitable donations of property
The Act also included Energy Extenders, such as the Code Section 25C – Nonbusiness Energy Property Credit. This credit allows taxpayers to make qualified energy efficiency improvements to residential property, such as adding insulation, energy efficient exterior windows and energy efficient HVAC systems.
If you have any questions regarding this, please do not hesitate to contact our office at 912.353.7800.