While you are pulling together your information to prepare your 2013 income taxes, you should know about the tax provisions that expired at the end of the year. The following are among the more significant of these provisions.
- Alternative itemized deduction for state and local sales taxes
- Above-the-line deduction for certain expenses of teachers
- Above-the-line deduction for qualified tuition and related expenses
- Itemized deduction for mortgage insurance premiums deductible as qualified interest
- Exclusion of discharge of principal residence indebtedness from gross income
- Tax credit for energy efficient appliances
- Research and experimentation credit
- Work opportunity tax credit
- Increased expensing deduction to $500,000 (reverted to $25,000)
- Bonus depreciation
- Reduction in S corporation recognition period for built-in gains tax
- 15-year straight line cost recovery for qualified leasehold, restaurant and retail improvements
Whether and when these provisions will be retroactively extended by Congress on a temporary or permanent basis remains to be seen. A recently updated report from the Congressional Research Service notes that the Obama Administration’s FY2014 budget called for permanently extending and modifying certain provisions, including the research tax credit, the work opportunity tax credit and the deduction for state and local sales taxes. This budget also reflected the notion that the expired provisions should be looked at as part of broad tax reform, a feeling held by many influential tax policymakers as evidenced by their remarks. If any of these expired provisions are applicable to your tax situation, please contact your RubinBrown tax advisor for the latest information on the extension of these provisions.
Under U.S. Treasury Department guidelines, we hereby inform you that any tax advice contained in this communication is not intended or written to be used, and cannot be used by you for the purpose of avoiding penalties that may be imposed on you by the Internal Revenue Service, or for the purpose of promoting, marketing or recommending to another party any transaction or matter addressed within this tax advice. Further, RubinBrown LLP imposes no limitation on any recipient of this tax advice on the disclosure of the tax treatment or tax strategies or tax structuring described herein.
All Tax Consulting News Tax Consulting Services