Beware of Expiring Tax Breaks
The Senate passed a comprehensive extenders bill, the Expiring Provisions Improvement Reform and Efficiency (EXPIRE) Act, in April 2014. The bill would extend for two years over 50 expired provisions. The House, on the other hand, has focused on permanent extension of tax provisions in a series of bills. Added to the mix, of course, is President Obama, who has threatened to use his veto pen on legislation he doesnt like.
Businesses would like to know for tax planning purposes, and the IRS would like to know so they can get out the forms and program their systems on time. Preparers would like to know so tax season begins on time. Following is a list of extenders most likely to be passed, either in the upcoming lame-duck session or early next year.
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R&D Credit
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Section 179 Expensing
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Bonus First-Year Depreciation
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Food Donation Tax Deduction
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Option to Deduct State and Local Sales Taxes
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Work Opportunity Tax Credit
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Qualified Small Business Stock
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Credit for Energy Efficient Improvements to Existing Homes
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Above-the-Line Deduction for Higher Education Expenses
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Tax-free Distributions from IRAs for Charitable Purposes
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Offshore Tax Break
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