The Taxpayer Prevention Act of 2014
H.R. 5771 was signed by the Senate on Tuesday, December 16th and President Obama is expected to sign it into law this week.
The tax extenders are retroactive to January 1, 2014 through the end of 2014 with very few changes to the 2013 tax provisions. The following is a recap of the key provisions that in H.R. 5771:
Bonus Depreciation & Section 179 Depreciation
The extension allows taxpayers to claim a 50% deduction for assets placed into service by December 31, 2014. Section 179 deductions are limited to $500,000 for 2014 with a $2 million investment limit.
Qualified Real Property
The extension of the 15-year life for Qualified Real Property including; qualified improvement property, qualified restaurant property, and qualified retail improvement property placed in service by December 31, 2014 may be a valuable addition to taxpayers.
Work Opportunity Tax Credit
An employer may hire qualified individuals who qualify and receive a credit if the employee begins employment in 2014.
Research & Development Tax Credit
Several industries including manufacturing, software, pharmaceutical, agriculture, food science and telecommunications may qualify for the R&D tax credit.
Tax-Free IRA Distributions to Charities
Taxpayers age 70½ or older can make direct contributions from their IRA to qualified charitable organizations without incurring any income tax on the distribution, up to $100,000 for the 2014 tax year. You can even use the distribution to satisfy a required minimum distribution. But the distribution must be made by Dec. 31.