Legislation (H.R. 5771) has been signed into law by President Obama to extend through Dec. 31, 2014, many popular tax breaks that expired on Dec. 31, 2013.
The following business and individual income tax provisions are among those that have been extended through 2014.
- The tax credit for increasing research activities
- 50 percent bonus depreciation
- Increased small-business expensing (Section 179) limit
- The 100 percent exclusion from gross income of gain from the sale of small-business stock purchased during 2014
- The basis adjustment rule for stock of an S corporation making charitable contributions of property
- The reduction of the recognition period for the built-in gains of S corporations to five years
- The work opportunity tax credit
- The tax deduction for state and local general sales taxes in lieu of state and local income taxes
- The tax deduction for contributions of capital gain real property for conservation purposes
- The tax deduction for qualified tuition and related expenses
- The tax exemption for certain distributions from individual retirement accounts for charitable purposes
Congress has published a complete list of extended provisions. Fiscal-year taxpayers who have already filed their returns covering a portion of 2014 will need to amend their returns to claim any available benefits.