Of course we are not discussing extending a tax return (it is either too late for 2013, and/or too early for 2014), but in one of Congress’s final acts before it adjourned for the year is to extended certain tax deductions and/or credits that already expired in 2014. This has been extended for one year, and will expire on January 1st 2015. Here is a list of some of the tax items that Congress did extended:
• The Educator Deduction – This deduction (the maximum amount of $250) is for primary and secondary school teachers for purchasing teaching supplies, and it is an “above-the-line” deduction on the personal tax return;
• Qualified Residential Exclusion – This big tax benefit for a person who lost his/her primary house, due to foreclosure, can still excluded his/her cancelled debt income on his/her former mortgage for another year;
• Mortgage Insurance – This deduction, an itemized deduction, for mortgage insurance premiums that person had to pay on his/her mortgage;
• Sales tax Deduction – Yes, for a person who resides in state that does not have an income tax (or hardly has any stat tax withholdings), can still claim this itemized deduction for another year;
• Qualified Tuition and Fees – This “above-the-line” tax deduction, for college and/or university tuition paid for a person and/or his/her dependent, has be extended for another year;
• Leasehold Improvements – Any improvements made a retailer or a restaurant owner during 2014, is still able to depreciate such improvements for 15 years, rather than stretching it out for 39 years.
• Bonus Deprecation – The 50% of extra or “bonus” depreciation for any major but newly purchased (not purchased as used) business equipment, has been extended for 2014;
• “§ 179 Deduction” – Any major business equipment (be it new or used) purchased during 2014, can still be fully “expended” for up to $500,000;
• Energy Improvement Credit – Any energy improvements made during 2014 for his/her primary residence, is still able to take this energy tax credit for 2014
These are some of the tax deductions/credits that were extended into 2014. If you want us to discuss any of these deductions/credits and how they can be applied to you, please contact us at firstname.lastname@example.org, and will be more than happy to go over these extended deductions/credit for 2014.