The major tax news at the end of last year was 55 tax breaks expired on December 31, 2013. During all of 2014 tax planners and tax payers all were awaiting a final decision on whether or not many of these will be renewed or revised. As the year draws to an end, Congress is backing off of revisions and proposing simply extending these breaks.
As a result those 55 tax breaks that expired last year will be extended.
Congressional Republicans on Tuesday said the measures would be renewed retroactively to Jan. 1, 2014 but only through the end of 2014.
In the next couple of weeks tax experts will be watching the Congressional action carefully. Those 55 tax breaks are:
- Tax-free distribution from individual retirement plans for charitable purposes.
- Reduction in S corporation recognition period for built-in gains tax.
- Credit for energy efficient appliances
- Deduction for qualified tuition and related expenses
- Employer wage credit for activated military reservists
- Non business energy credits
- Deduction for state and local general sales tax
- Additional first year depreciation for 50 percent of basis of qualified property
- Incentives for biodiesel and renewable diesel fuel
- Credits for research and experimentation expenses
- The remaining 45 are mostly business credits