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President Signs Tax Extenders into Law


eagle statue and flagOn December 19, President Barack Obama signed the Tax Increase Prevention Act of 2014 (H.R. 5771) into law, following Tuesday's approval from the U.S. Senate. This law allows a one-year extension through the end of 2014 on more than 50 tax relief provisions that expired at the end of 2013.

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

*For more information on the above extenders, click here.

  • 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.

Hemmann_Darla (3)To further discuss these extenders, please contact your Brown Smith Wallace Tax Advisor (click here for a list of tax advisors) or Darla Hemmann, Partner, Tax Services, at 314.983.1203 or



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