On Dec. 16, the Senate passed the Tax Increase Prevention Act of 2014 (TIPA), which the House passed on Dec. 3. The act extends through Dec. 31, 2014, certain tax relief provisions that expired at the end of 2013. For businesses, these include 50% bonus depreciation on qualified assets, the higher Section 179 expensing election, and the research credit. For individuals, these include the deduction for state and local sales tax, direct IRA distributions to charity for taxpayers age 70½ or older, and certain energy-efficiency tax credits.
Several of these provisions can produce significant savings for taxpayers on their 2014 income tax returns, but quick action (before Jan. 1, 2015) may be needed to take advantage of some of them. To help you do that, we’ve prepared a Tax Law Change Update that highlights key provisions of the act. The link is included below.