There have been significant recent efforts in Congress to renew tax extenders which expired at the end of 2013.  All indications are that these provisions will likely be retroactively reinstated to January 1, 2014.  The bills should be finalized by no later than November after the mid-term elections.  Key provisions would include:

Individual Provisions

  • Above-the-line deduction of up to $250 for expenses of elementary and secondary school teachers
  • Exclusion from income for mortgage debt forgiveness on primary residence
  • Deduction for mortgage insurance premiums$ couple
  • Deduction for state and local general sales taxes
  • Above-the-line deduction for higher education expenses (Tuition & Fees Deduction)
  • Tax-free distributions that go directly from Individual Retirement Accounts (IRA’s) to charitable organizations
  • 10% credit for purchases (up to $500) of energy efficient improvements to existing homes

Business Provisions

  • Research and experimentation tax credit
  • 50% bonus depreciationon purchases of new equipment and fixed assets (with special rules for vehicles)
  • Increased section 179 expensing limits ($500,000)(Currently only $25,000)

We will continue to keep you informed as the bill evolves and is signed into law. If you have any questions about how this information may affect you or your business, please give us a call at 239.433.5554 or visit www.markham-norton.com