The Tax Rules for 2014 are Set.  

Breaks that expired after 2013 were revived… But the extension is just for 2014.

An effort was made to extend the majority of the provisions through 2015,while making several others permanent,this effort fell apart after President Obama said he’d veto the package.

 

Below are the Tax Breaks that were preserved:

  • The itemized deduction for state sales tax in lieu of income tax.
  • The above-the-line deduction for up to $250 of educators’ classroom supplies.
  • Exclusion for up to $2 million of forgiven debt on primary homes.
  • The ability of individuals age 70½ and older to make direct payouts of up to $100,000 from IRAs to charity.
  • Businesses can claim 50% bonus depreciation and the R&D tax credit.
  • Businesses can expense up to $500,000 of assets that are put in use in 2014.

Contact us with questions and concerns.

Nick DiBartolomeo,Tax Partner