Congress Considers Extending Tax Deductions
There have been significant recent efforts in Congress to renew tax extenders which expired at the end of 2013. All indications are that these provisions will likely be retroactively reinstated to January 1, 2014. The bills should be finalized by no later than November after the mid-term elections.
Key extended tax deductions would include:
· Above-the-line deduction of up to $250 for expenses of elementary and secondary school teachers
· Exclusion from income for mortgage debt forgiveness on primary residence
· Deduction for mortgage insurance premiums
· Deduction for state and local general sales taxes
· Above-the-line deduction for higher education expenses (Tuition & Fees Deduction)
· Tax-free distributions that go directly from Individual Retirement Accounts (IRA’s) to charitable organizations
· 10% credit for purchases (up to $500) of energy efficient improvements to existing homes
· Research and experimentation tax credit
· 50% bonus depreciation on purchases of new equipment and fixed assets (with special rules for vehicles)
· Increased section 179 expensing limits ($500,000) (Currently only $25,000).
Not surprisingly these are among the most popular of the tax deductions that benefit both businesses and individuals.
Ari Good, JD LL.M. is a Miami tax attorney advising clients in income tax, employment tax, aviation tax, entertainment tax and IRS tax law issues. A top tax attorney in Miami, Mr. Good fights the IRS and Florida Department of Revenue in tax litigation and tax negotiation matters.
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