Tax Extender Bill Approved by the Senate
December 16, 2014

     With only two weeks left in the 2014 calendar year, the Senate has officially passed the Tax Increase Prevention Act of 2014, also known as the Tax Extenders Bill. This bill extends several tax provisions through December 31st, 2014 that were originally set to expire on December 31st, 2013. These provisions will be retroactively enacted to January 1st, 2014 and will only be applicable to the 2014 tax year.

Extended Provisions

Among the extended provisions is the Section 179 expense increaseFor 2014, businesses will be allowed to deductup to $500,000 of qualifying business-use equipment (with a ceiling maximum of $2,000,000 purchased). We strongly recommend that you purchase and place in service any and all equipment you need to purchase beforeDecember 31st, 2014 to take advantage of these tax savings for the year. NOTE - This tax break may not be available in 2015.

 

Other extended provisions to note include the extension of 50% bonus depreciation for new assets, the $250 deduction for teachers' expenses, the qualified tuition deduction, and the provision to allow a person the alternative of state and local sales tax deductions in place of state income tax deduction.

           As mentioned previously, these extensions will applyonly to the 2014 tax year. Any equipment purchases made after midnight on December 31st, 2014 will be subject to 2015 laws, which will revert back to $25,000 of Section 179 expense without further Congressional action.

 

We understand this is a very limited amount of time to make these large and difficult decisions concerning your businesses. As always, please feel free to contact us with any questions or concerns you may have regarding the Tax Extender Bill and its implications on you.

Firm Signature 

Soukup, Bush & Associates, P.C.
(970) 223-2727
www.soukupbush.com