Tax legislation – better late than never!
The senate passed the much anticipated “extender” tax bill yesterday, which will allow taxpayers to benefit in 2014 from deductions and credits that had expired after the 2013 tax year. With the passage of the legislation by the house and the senate, which the President is expected to sign into law, individual taxpayers will continue to be allowed to deduct such items as the educator deduction, the sales tax deduction, a deduction for mortgage insurance premiums, among other expenses. Additionally, the income exclusion for forgiven mortgage debt was extended, which allows taxpayers to exclude from income the forgiveness of debt relative to their home mortgage. For business taxpayers several deductions and credits were also extended, however the deduction most business owners were hoping would be extended has to do with the one-time expensing and bonus deprecation, allowed for accelerating the write off fixed assets acquired in the 2014 calendar year. With the late passage of this tax legislation, the IRS will be required to generate tax forms that allow for these newly extended deductions and credits, on top of dealing with the changes relative to the Affordable Care Act, which could further delay the start of the upcoming tax filing season. Please contact us if you’d like to discuss what this new tax legislation means to you and/or your business!
Posted Nov 21, 2014/wittenbergcpa.com