Will Expired Tax Extenders Be Reinstated?

Will Expired Tax Extenders Be Reinstated?

The Tax Increase Prevention Act of 2014, which was passed last December, reinstated over 50 taxpayer-friendly tax provisions, more commonly known as "tax extenders." However these 50 extenders were only retroactively reinstated for 2014, leaving many taxpayers in "tax planning limbo" as to whether they will be available for 2015 and beyond. Will they return? If so, when?

Without a crystal ball, nobody can accurately predict when or if the extenders will be renewed once again. But if the previous actions taken by Congress are any measure, we can expect that the vast majority of the extenders will again be retroactively reinstated for 2015, although it is likely this will not happen until late in the year.

Here is a look at some of the more than 50 provisions:

Business:

Research credit
Work opportunity credit
Enhanced ability to deduct certain fixed asset purchases (Sec. 179)
Bonus depreciation
New market tax credit
Straight line depreciation for leasehold improvements, qualified restaurant and restaurant buildings and improvements
Exclusion of gain from qualified small business stock
Extension in the reduction in the period of built in gains for S corporations

Individuals:

Deduction of certain education expenses for elementary and secondary teachers
Option to deduct sales and local general sales tax
Exclusion of gain from discharge of indebtedness for primary residence
Above the line deduction of qualified tuition and related expenses
Tax free distribution of charitable deduction from retirement accounts

This is only a partial list of the expired extenders that we expect will be again retroactively reinstated. The list includes several energy provisions and other provisions as well.

We will continue to monitor the status of this issue. If you have any questions, please do not hesitate to contact Gray, Gray & Gray's Tax Department.

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Gray, Gray & Gray, LLP
781.407.0300

www.gggcpas.com

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