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Tax Extenders Package Approved by Congress

12.17.14

Congress acted to pass a retroactive extension of over 50 tax items that expired at the end of 2013. President Obama is expected to sign the Act shortly. Most of the tax provisions were extended retroactively to the beginning of 2014 and are effective through December 31, 2014.

Some of the more broadly applicable, and time sensitive, tax provisions that were extended include:

  • Ability for individuals age 70 1/2 or older to make IRA distributions of up to $100,000 directly to eligible charities.
  • 50% bonus depreciation for new assets placed in service in 2014.
  • First-year bonus depreciation of $8,000 for the business use of new vehicles placed in service in 2014.
  • Section 179 expensing of up to $500,000 for new or used assets placed in service in 2014.
  • 100% capital gain exclusion for qualified small business stock acquired after September 27, 2010 and before January 1, 2015, and held for more than five years. The maximum exclusion is $10 million or ten times the investment in the qualified stock.
  • The research credit is extended for qualified expenditures paid or accrued before January 1, 2015.

Click here to download [NOTE: NEED PDF FILE]the Special Report listing the extended items and additional details for the more common provisions.