Congress has passed the “tax extenders” to extend many tax provisions for 2014 that had expired at the beginning of the year. A few of the more common provisions are listed below.
Small Business highlights:
- The small business (Section 179) depreciation deduction limit on purchases of assets remains at $500,000 limit instead of dropping to $25,000
- 50% bonus depreciation on new property has also been extended
Personal Tax highlights:
- Tax free IRA charitable contributions can be made for those over 70 ½
- The sales tax deduction will continue to be allowed in lieu of the state tax deduction on Schedule A, itemized deductions.
- The higher education tuition and fees deduction will remain the same
- Mortgage insurance premiums will continue to be deductible as an itemized deduction
We expect these provisions to be extended for 2015 as well but that will require additional legislative action.
