On December 3, 2014, the House of Representatives voted 378 to 46 to pass H.R. 5771, the Tax Increase Prevention Act of 2014. The Senate voted yesterday, December 16, 2014, to pass it. The bill will now be sent to President Obama, who is expected to sign it.
The Tax Increase Prevention Act of 2014 is a $44.7 billion extender tax package that retroactively reinstates several individual and business tax provisions through December 31, 2014. It provides temporary tax relief to taxpayers from many tax provisions that are set to expire on December 31, 2014. Some of the extenders included in this bill are:
Individual Tax Extender Highlights:
- State and Local Sales Tax Deduction
- Mortgage Insurance Premiums Deduction
- Qualified charitable distributions from IRA
Business Tax Extender Highlights:
- Bonus depreciation
- Increase in Section 179 expense
- Fifteen-year life for leasehold improvements
- Research credit
Congress extended the expired tax provisions temporarily for one-year (through December 31, 2014).
Look for more information in the near future.
