Many valuable tax breaks expired at the end of 2013, but Congress will probably revive at least some of them, likely retroactively to January 1, 2014. The question is exactly which breaks they’ll extend and when they’ll pass the necessary legislation to do so.
Here are several that may benefit you or your business if extended:
- The deduction for state and local sales taxes in lieu of state and local income taxes,
- Tax-free IRA distributions to charities,
- 100% bonus depreciation,
- Enhanced Section 179 expensing,
- Accelerated depreciation for qualified leasehold improvement, restaurant and retail improvement property,
- The research tax credit,
- The Work Opportunity tax credit, and
- Various energy-related tax incentives.
Please check back with us for the latest information. In the meantime, keep in mind that, if you qualify, you can take advantage of these breaks on your 2013 tax return.