Unfortunately for taxpayers, Congress procrastinates when it applies to extending expiring tax breaks (“extenders”). For example, Congress did not pass the 2014 extenders until December of 2014, retroactively applying it to January 1, 2014.
With Congress returning from its August recess, we’re again waiting to see what will happen with the 2015 extenders. The following popular tax breaks have expired on December 31, 2014:
- Deductions for qualified residence mortgage insurance (PMI)
- Deductions for state and local general sales tax in lieu of state income taxes
- Tax-free IRA distributions to charities
- 50% bonus depreciation
- Enhanced Section 179 expensing
- Accelerated depreciation for qualified leasehold improvement, restaurant and retail improvement property
- Reduction is S corporation recognition period for built-in gains tax
- The research tax credit
- The Work Opportunity tax credit
- Various energy-related tax incentives
Congress may act soon to extend these and many other tax breaks, we will keep you posted. When Congress acts, you may need to act quickly to take advantage of the legislation./
Questions? For help ensuring you can maximize your tax deduction, please contact us.
Hal Zemel, a Tax Principal at Berdon LLP, has more than 20 years in public accounting and advises businesses in the real estate, service, and manufacturing sectors.