Tax Increase Prevention Act of 2014
Great news! Last week the Tax Increase Prevention Act of 2014 was signed by POTUS, and extended several key tax deductions.
- the $1 for $1 tax deduction up to $250 of expenses of elementary and secondary school teachers (the rest goes on Form 2106, subject to 2% income thresholds)
- the ability to exclude debt forgiveness on a primary residency which is great news for those who gambled on short-sales in 2014
- the tax deduction of mortgage insurance premiums for those earning up to $109,000 (or $54,500 for single taxpayers)
- the tax deduction of state and local general sales taxes in lieu of state and local income taxes
- accelerated depreciation of certain business property (bonus depreciation) including the acceleration of leasehold improvements at 15 years
- the increased expensing allowance for business assets thru Section 179 up to $500,000
- the tax credit for residential energy efficiency improvements (still severely limited as compared to earlier years)
There are several others, and for your reading pleasure you can check out HR Bill 5771 of the 113 Congress at-
I guess Santa stocked some stuffings.. err.. I mean stuffed some stockings a bit early this year. Ho ho ho!
Merry Christmas from your friends at the Watson CPA Group!
Jason Watson, EA, MBA
Managing Partner, Business Development
The Watson CPA Group
9475 Briar Village Point, Suite 325
Colorado Springs CO 80920
719-387-9800 phone, ext 203
Check out our KnowledgeBase at www.watsoncpagroup.com/kb/
IRS Circular 230 Disclaimer: The IRS has recently rescinded this disclaimer. Who says the IRS isn’t progressive?
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