- Oops, They Did It Again - The Tax Version
- January 6, 2015 | Author: Amanda Wilson
- Law Firm: Lowndes, Drosdick, Doster, Kantor & Reed Professional Association - Orlando Office
Every year, as the countdown to the new year approaches, Congress races to extend expiring tax provisions. Last night, the Senate finally caught up with the House and approved a bill extending certain beneficial tax provisions. The President is expected to sign the bill into law this week.
The provisions extended, on the business side, tax credits for research and development expenses, accelerated depreciation deductions and an increased section 179 expensing amount. On the personal side, the extended benefits included itemized deductions for state and local sales taxes, deductions for certain and education expenses and allowing tax-free direct transfers of up to $100,000 from an IRA to qualified charities.
These tax provisions are often tools that individuals and businesses use as part of their year-end tax planning. For example, by going out and buying necessary computer equipment. So, their extension, while late, is definitely a good thing. Unfortunately, the fix is only for the short term. The extension is only for one year, so we will likely be right back in the same situation this time next year.