There are a number of tax provisions that expired at the end of 2013. Congress will need to decide whether to extend these measures and make them retroactive to Tax Year 2014 or let them lapse. In the past, Congress has deferred acting on this legislation until late in the year.
Will Congress Extend These Measures?
List of high impact extender provisions that lapsed at the end of 2013:
Individual provisions
- Deduction for state and local sales taxes
- Deduction for school teacher expenses
- Tuition and fees deduction
- Deduction for mortgage insurance premiums
- Parity for exclusion for employer-provided mass transit and parking benefits
- Exclusion of discharge of principal residence debt
- Credit for health insurance costs
Business provisions
- Research and experimentation credit
- Work opportunity credit
- Increase in Section 179 expensing to $500,000
- Expanded definition of Section 179 property
- Bonus depreciation
- Employer wage credit for activated military reservists
- Special rules for qualified small business stock
- Reduction in S corporation recognition period for build-in gains tax
- Election to accelerate AMT credits in lieu of additional first-year depreciation
- Low-income housing tax credit rate
- 15-year straight line cost recovery for qualified leasehold, restaurant and retail improvements
- Accelerated depreciation for business property on Indian reservations
- Indian employment credit
- New markets tax credit
- Empowerment zone tax incentives
Charitable provisions
- Enhanced charitable deduction for contributions of food inventory
- Tax-free distributions from IRAs for charitable purposes
- Basis adjustment to stock of S corporations making charitable contributions of property
- Special rules for contributions of capital gain real property for conservation purposes
Energy provisions
- Credit for construction of energy efficient new homes
- Energy efficient commercial building deduction
- Credit for energy efficient appliances
- Credit for nonbusiness energy property