Congress will have the “dubious distinction” of starting next year with all of the provisions expired, said Senator Orrin Hatch, a Utah Republican who is poised to become chairman of the Senate Finance Committee in January.
“Never in the history of tax legislation have so many voted for so little and been so disappointed,” he said.
On December 16, 2014 Congress passed, and shortly thereafter President Obama signed the Tax extenders package – The Tax Increase Prevention Act of 2014.
The bill extended over 50 provisions – that had actually expired on December 31, 2013. Now these provisions were extended for 2014 – but only until December 31, 2014. Thus they all expire again in less than two weeks.
Items extended included:
The election to claim an itemized deduction for state & local sales tax (if greater than state & local sales tax)
The Higher education Deduction
Teachers Classroom Expense Deduction – still limited to $250
Exclusion of Cancellation of Mortgage Debt – from Income
Ability to deduct Mortgage Insurance Premiums as interest
Businesses can again Write-off Asset purchases up to $500,000 under section 179
Since all of these provisions now expire in just a few days, it will be up to the new Congress to take action on them sometime during 2015 – or not!
If you want more details on the other provisions, please contact BDS.