Congress Passes Tax Extender Package for 2014 – December 17, 2014 by Tracy Monroe

The Senate passed the much-anticipated tax extender bill yesterday, officially known as the Tax Increase Prevention Act of 2014 (TIPA), and now awaits President Obama’s signature. TIPA, which is expected to be signed into law as early as today and without any changes, will retroactively extend more than 50 expired tax provisions as of January 1, 2014.

Over the past few months of uncertainty surrounding the extenders, our tax team has advised clients to plan as if key credits and programs that expired at the end of 2013 would be extended. With TIPA passing in Congress 14 days before year-end, and a presidential signature on the imminent horizon, business and individual taxpayers can finally plan with certainty. Some of the most significant business provisions extended will include:

  • 50% bonus depreciation to property acquired and placed in service during 2014, including a binding contract provision extending the placed-in-service date to 2015;
  • enhanced Section 179 expensing at the $500,000 level with phase-outs starting at $2 million of additions; and
  • important tax credits, such as the research and development (R&D), New Markets Tax Credits and Work Opportunity Tax Credit.

Individual provisions to be extended include an optional sales tax deduction and the exclusion of income from mortgage debt cancellation on a principal residence.

As our tax team continues to study the impact of TIPA, we will reach out directly to clients regarding any opportunities and will post updates here on our Never Miss Blog.

We want to hear from you! We encourage you to comment below on this blog post, share it on social media or contact Tracy Monroe at tmonroe@cohencpa.com or a member of your service team for further discussion.

This communication is published by Cohen & Company for our clients and professional associates. Cohen & Company is not rendering legal, accounting or other professional advice. Any action taken based on information in this publication should be taken only after a detailed review of the specific facts and circumstances.