2014 Tax Extender Bill

Finally we have 2014’s tax rules, two weeks before the end of the year! Plenty of
time to go out and purchase some appliances or carpet, right? Note – these breaks
have only been extended through 2014, an effort to extend them through 2015 fizzled
out once the President said he’d veto a long term tax package.

Breaks that expired 12/31/13 that have been revived include:

* Itemized deduction for sales tax
* Above-the-line deduction for up to $250 of educators’ classroom supplies
* Exclusion for up to $2 million of forgiven debt on primary homes
* Qualified charitable distribution from IRA for those over age 70 ½
* 50% BONUS DEPRECIATION!!! (This allows landlords to expense up to 50% of carpeting and appliances, also ups the tax break for buying a heavy SUV.)
* Section 179 expense limitation was restored to $500,000

A new provision included in the bill is a tax-deferred ABLE savings account for
the disabled. Starting in 2015, nondeductible contributions of up to $14,000 can
be made to ABLEs for those individuals who are blind or disabled before the age
of 26. Money withdrawn from the account used for housing, transportation, education,
job training etc. are tax-free.

Please feel free to contact Kam Wiese, CPA at Kluge and Wiese LLP at (402) 332-3387 if you have additional questions.

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Kluge and Wiese LLP
(402) 332-3387
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Gretna, Nebraska 68028
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