Tax Extenders Loom As Thanksgiving Arrives

As Americans sit down to enjoy their Thanksgiving feasts this week, there remains SEVERAL tax provisions still waiting on Congress to vote on.  Tax provisions, that if extended, can have a huge impact on many American’s 2014 tax returns.  Following lists a few that you should know about:

For individuals:

• The option to deduct state and local sales and use taxes instead of state and local income taxes.
• The above-the-line deduction for qualified higher education expenses
• Tax-free IRA distributions for charitable purposes by those age 70 ½ or older
• The exclusion for up-to$2 million of mortgage debt forgiveness on a principal residence

For businesses:

• 50% bonus first year depreciation for most new machinery, equipment and software
• The $500,000 annual expensing limitation
• The research tax credit
• 15-year write-off for qualified leasehold improvement property, qualified restaurant property and qualified retail improvement property

Davis and Hodgdon Associates CPAs has been assiting nonprofits, individuals and businesses with tax and accounting services in the Burlington Vermont Metro area for more than 20 years. If you have any questions or concerns please feel free to call 802.878.1963 or email [email protected].