With Congress returning from its August recess, this is the question on tax-savvy Americans’ minds. Many valuable tax breaks aren’t permanent, so Congress has to pass legislation extending them to keep them in effect. Unfortunately, Congress often waits until the last minute to do so.
For example, Congress didn’t pass 2014 extenders until December 2014, making the legislation retroactive to January 1, 2014 — but not extending the breaks to 2015. So we’re again in a waiting game to see what will happen with extenders legislation. Some believe Congress will act soon, while others think we’ll again be waiting until December.
Here are several expired breaks that may benefit you or your business if extended:
- The deduction for state and local sales taxes in lieu of state and local income taxes,
- Tax-free IRA distributions to charities,
- 100% bonus depreciation,
- Enhanced Section 179 expensing,
- Accelerated depreciation for qualified leasehold improvement, restaurant and
retail improvement property,
- The research tax credit,
- The Work Opportunity tax credit, and
- Various energy-related tax incentives.
Please check back with us for the latest information. Keep in mind that quick action after extenders legislation is passed may be required in order to take maximum advantage of the extended breaks.
We highly recommend you confer with your Miller Kaplan advisor to understand your specific situation and how this impacts you.