With Congress returning from its August recess, this is the question on tax-savvy Americans’ minds. Many valuable tax breaks are not permanent, so Congress has to pass legislation extending them to keep them in effect. Unfortunately, Congress often waits until the last minute to do so.
For example, Congress didn’t pass 2014 extenders until December 2014, making the legislation retroactive to January 1, 2014 — but not extending the breaks to 2015. So, we are again in a waiting game to see what will happen with extenders legislation. Some believe Congress will act soon, while others think we will again be waiting until December.
Here are several expired breaks that may benefit you or your business if extended:
- The deduction for state & local sales taxes in lieu of state & local income taxes
- Tax-free IRA distributions to charities
- 100 percent bonus depreciation
- Enhanced Section 179 expensing
- Accelerated depreciation for qualified leasehold improvement, restaurant, & retail improvement property
- The research tax credit
- The Work Opportunity tax credit
- Various energy-related tax incentives
Please check back with us for the latest information. Keep in mind that quick action after extenders legislation is passed may be required in order to take maximum advantage of the extended breaks.