The Tax Increase Prevention Act of 2014 will extend for one year tax provisions will expire on December 31, 2014
The House passed late Wednesday by 378-46 vote H.R. 5771, the Tax Increase Prevention Act of 2014, which could extend a massive package of expired tax breaks through the end of the year. The bill would enable millions of businesses and individuals to claim the tax breaks on their 2014 returns but leaves them uncertain about these provisions in 2015.
The Senate Democratic leaders were noncommittal about whether they would accept the bill or try to change it but it appears they may vote on it this week. Time is short because the House plans to adjourn for the year this week, and the Senate could as well.
Some of the main tax breaks for businesses will be the extension of Section 179 (full depreciation) back to the $500,000 level and 50% bonus depreciation will be back for assets placed in service by December 31, 2014. The bill also extends the research credit.
The biggest tax break for individuals allows people to deduct state and local sales taxes or state income tax on their federal returns depending on which is better. The bill also allows homeowners to exclude cancelation of debt income if they qualify. Other provisions allow teachers who spend their own money on classroom supplies to deduct qualified amounts and renews the tuition deduction to reduce adjusted gross income. It also extends the tax-free distributions from individual retirement plans for charitable purposes.
For more information please email or call Robert Tighe at 847-695-2700 or Robert.Tighe@tkocpa.com.