congress and tax law
congress and tax law

Year-End Extender Legislation Still in Holding Pattern

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There is a large basket of tax benefits that expired at the end of 2014, and these provisions will not apply to tax year 2015 unless Congress and the President decide to extend them.

Here is a list of the high-impact items:

Individuals

  • Tuition and fees deduction
  • Deduction for school teacher expenses
  • State and local taxes deduction

Depreciation

  • 50 percent bonus depreciation
  • Increased section 179 expensing limits

Businesses

  • Research and development credit
  • Work opportunity credit

Energy

  • Credit for energy-efficient home improvements

The government typically extends these measures on a one- to two-year basis late in year. This late legislation has delayed the opening of tax season in the past because it takes the IRS some time to incorporate the changes into their systems. We are once again in a “wait and see” pattern. Many in Washington call for Congress to act sooner rather than later. The most likely outcome seems to be that Congress will turn to the extenders towards the end of year. For Intuit’s Professional Tax Products (Lacerte®, ProSeries® and Intuit Tax Online), we have built in flexibility so that we can react quickly if legislation is extended late in year.

Mike D'Avolio, CPA, JD

Mike D’Avolio, CPA, JD, is a tax law specialist for Intuit® ProConnect™, where he has worked since 1987. He monitors legislative and regulatory activity, serves as a government liaison, circulates information to employees and customers, analyzes and tests software, trains employees and customers, and serves as a public relations representative. More from Mike D'Avolio, CPA, JD

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