As we all know, it’s that dreaded time of the year-Tax time!
In honor of tax season, I have a series called “Ask An Accountant”. Simply send in your tax questions each week to firstname.lastname@example.org and I will post the question and give an answer from an experienced accountant.
Even with the last minute tax bill signed on December 19, 2014, The IRS will begin accepting 2014 tax returns electronically on January 20, 2015. As a reminder, these tax extenders are only valid for the 2014 tax returns as they have expired December 31, 2014.
The “tax extenders” that will affect the majority of taxpayers are as follows:
- $250 above the line deduction for teacher classroom expenses
- Discharge of indebtedness on principal residence excluded from income
- Mortgage insurance premiums (MIP) treated as deductible mortgage interest
- Deduction for state and local general sales taxes
- Above the line deductions for qualified tuition and related expenses
- Tax-free distributions from IRAs to certain public charities for individuals over 70-1/2
There are several others and some “Business Extenders”. A few of the “Business Extenders” are:
- Research and Development Credit
- Work Opportunity Tax Credit (WOTC)
- 15 year straight line depreciation for “qualified” restaurant and retail leasehold improvements
- Bonus Depreciation of real property
- Section 179 Accelerated Depreciation on real property
The Energy Credits that many individuals took advantage of in prior years has also returned for Non-business energy property (energy efficient doors, siding, windows, heat sources).
This list is not all-inclusive and each tax situation is different. Please talk to a professional tax preparer about your specific situation.
IRS Circular 230 Notice:
Any U.S. tax advice in this written or electronic communication was not intended or written to be used, and it cannot be used by the taxpayer, for the purpose of avoiding any penalties that may be imposed under the Internal Revenue Code or applicable state or local tax law provisions.