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House Passes One-Year Extender Package for Tax Relief Provisions

12.08.2014

congress_capitol_governmentOn December 3, the House passed a bill for a one-year extension through the end of 2014 on more than 50 tax relief provisions that expired at the end of 2013.

The Senate is expected to vote soon without altering the bill. President Obama has not said whether he would sign the bill, but he has said that he is open to a short-term extension, leading many to believe the extenders will soon be passed into law.

The extenders comprise a range of tax incentives for businesses, individuals and nonprofits, including:

  • 50% bonus depreciation
  • Section 179 increase in expensing limit and in investment based phaseout amount
  • 15-year straight line cost recovery for qualified leasehold property, qualified restaurant property, and qualified retail improvements
  • Research and experimentation credit
  • Work opportunity tax credit
  • Reduction in S corporation recognition period for built-in gains tax
  • Special 100% gain exclusion for qualified small business stock
  • Tax-free distributions for charitable purposes from individual retirement account (IRA) accounts of taxpayers age 70 1/2 or older
  • $250 above-the-line deduction for certain expenses of teachers
  • Exclusion of up to $2 million ($1 million if married filing separately) of discharged principal residence indebtedness from gross income
  • Deduction for mortgage insurance premiums treated as qualified interest
  • Deduction for state and local sales taxes
  • Above-the-line deduction for qualified tuition and related expenses
  • Credit for nonbusiness energy property

For the bill summary, click here. Although these extenders are not law yet, the possibility is getting closer to reality. Please stay tuned for updates.

Plus: For help navigating your year-end tax planning, click here to request a digital copy of our 2014-2015 Tax Planning Guide.


Hemmann_Darla (3)To further discuss these extenders, please contact Darla Hemmann, Principal, Tax Services, at 314.983.1203 or dhemmann@bswllc.com.

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