Several federal tax provisions have expired as of November 2013, and Congress has yet to respond to the issue. While the public waits for Congress to approve extender legislation, which probably won’t happen until late December at the earliest, there are a few changes that will significantly impact taxpayers filing for 2014.
Industry specialists suggest that Congress is considering a two year extension of the previous federal tax provisions, however, it’s not guaranteed that every article will be renewed or extended. For now, it’s just a waiting game to see what exactly Congress decides with an extended bill for December.
Below are some of the provisions that are no longer applicable for taxpayers on the upcoming 2014 return:
- Educator Expense Deduction of $250 found on Form 1040, line 23
- Tuition and Fees Deduction found on Form 8917
- Itemized Deduction for Sales Tax
- 50% Bonus Depreciation
- Exclusion of gain from income for foreclosed home mortgage debt on Form 982
- Depreciation of leasehold restaurant or retail upgrades over 15 years
- Distributions from an IRA for a charity
- Form 5695’s energy property tax credit for nonbusiness
- Previous 30% limitation of capital gain real property contributions made for conservation increased to 50% limitation.
It’s important to recognize that Section 179 Expense provisions have been reduced for 2014 as well. The Maximum deduction is now $25,000, and the maximum cost prior to section 179 is $200,000. The qualified real property category has been eliminated completely.
It will be interesting to see what effect any legislation will have for the upcoming tax season. Keep alert for more information regarding which provisions were extended and what new legislation brings.
