The Extension that Never Ends

With the potential for retroactive tax law changes in 2014, please prepare for the extension of the following tax laws that expired in 2013. This expiration and extension treadmill has been going on for years. And while there is no guarantee that changes will be made, by being prepared with the proper documentation you can take advantage of any forecasted law changes.

pic 2

icon Educator’s $250 tax deduction
If you are a teacher and have out-of-pocket expenses please keep your receipts. You may be able to deduct up to $250 of qualified expenses even if you do not itemize deductions.
icon State sales tax itemized deduction option
Keep receipts of any large purchases. The sales tax provision allows for you to take either a general sales tax deduction or a state income tax deduction as an itemized deduction.
icon Direct contribution from retirement accounts for qualified seniors
In 2013, qualified seniors who donated funds directly from their retirement plan could exclude the plan withdrawal from income. Hold off using this technique in 2014 until you receive confirmation from Congress this tax benefit is extended.
icon Itemized deduction for mortgage insurance premium costs
Keep your mortgage insurance documentation for a potential itemized deduction.
icon Changes in small business depreciation
Through late November, 2014 there is no longer bonus first year depreciation. In addition Section 179 amounts are greatly reduced from $500,000 in qualified assets to $25,000. Even if the law changes, you have little time to purchase and install equipment. Please plan accordingly.

If other late law changes impact you, rest assured those changes will be applied to your tax return as they become known.

As always, should you have any questions or concerns regarding your situation please feel free to call.