Sorry for the delay in my blog post. I was hoping the Tax Extenders would be final before the 18th. The President signed the bill (Tax Increase Prevention Act) on Friday, December 19. I have some important information listed, so please read. This extension ends December 31, 2014.
First of all, for those of you who pay estimated tax payments, the due date for the fourth quarter of tax year 2014 is January 15, 2015. If you are not in the AMT tax bracket, please pay your state estimated tax payment on or before December 31, 2014 so you can get the tax deduction on your 2014 tax return.
Mileage rates for 2015: 57.5 cents for business use, 23 cents for medical/moving, and 14 cents for charity.
Tax Extenders for 2014 include, but are not limited to, the following:
- The deduction for mortgage insurance premiums.
- A provision allowing persons over age 70-1/2 to make tax-free withdrawals from their Individual Retirement Accounts (IRAs) to make charitable contributions.
- Debt Forgiveness exclusion for a personal residence.
- The educator expense deduction-adjustment to income of up to $250 for grade K-12 educators.
- Tuition and fees deduction-adjustment to income up to $4,000.
- Deduction for state and local general sales tax as an itemized deduction (Schedule A) for sales tax in lieu of state income tax.
- Nonbusiness energy property credit-up to $500 maximum lifetime credit for qualified energy efficient home improvements (windows, furnaces, etc.).
- Electric drive vehicle credits-the credit for two-and three-wheeled vehicles has been extended. (The provisions for low-speed electric vehicles expired).
- The credit for plug-in electric drive motor vehicles, such as the Nissan Leaf or Chevy Volt, is still available.
- Energy-efficient appliance credit.
Provisions affecting businesses:
- Bonus Depreciation allowing an additional first year deduction of 50 percent of the cost of new equipment.
- Enhanced Section 179 Expense Limitations allowing for the expense of $500,000 on acquired property for business use.
- New markets tax credit.
- Wage credit for employers of uniformed active duty service personnel.
- Work opportunity tax credit.
- Fifteen-year straight-line cost recovery for qualified leasehold improvements, qualified restaurant buildings and improvements, and qualified retail improvements.
- Enhanced charitable deduction for contributions of food inventory.
- Incentives for biodiesel and renewable diesel.
- Alternative fuels excise credit.
For a detailed list of all tax extenders related to tax year 2014, click here.
Feel free to contact me if you have any questions.
Thanks for taking your time to read this.
R. Darren Sanford, CPA, CGMA
Disclosure of Material Connection: Some of the links on this blog are “affiliate links.” This means if you click on the link and purchase the item, I might receive an affiliate commission. Regardless, I only recommend products or services I use personally and believe will add value to my readers. I am disclosing this in accordance with the Federal Trade Commission’s 16 CFR, Part 255: “Guides Concerning the Use of Endorsements and Testimonials in Advertising.”
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