Recent Tax Updates
Extended Business Provisions Applicable to 2014 Only
The following business related provisions were extended for one year and are applicable for 2014 federal returns:
- Increased Section 179 Expense Deduction Amounts
- Maximum Deduction: $500,000
- Maximum cost before the limit is reduced: $2,000,000
- Qualified Real Property category for Section 179 Expense Deduction
- Maximum deduction: $250,000
- Qualified property includes: leasehold improvements, restaurant property, and retail property
- 50% bonus depreciation on qualifying property
- 15 year straight line depreciation for qualified leasehold restaurant and retail improvements
- New Markets Tax Credit
- Work Opportunity Credit
- Work Opportunity Credit for hiring qualified veterans
- Research and Development Credit
- Credit for construction of new energy efficient homes
- Accelerated Depreciation for Indian reservations
- Indian employment credit
- Exception under Subpart F for Active Financing Income
- American Samoa Economic Development Credit
- Deduction allowable with respect to income attributable to Domestic Production activities in Puerto Rico
- Qualified Zone Academy Bonds
- Maintaining railroad tracks credit
- 7 year recovery period for certain motorsports racetrack property
- Tax treatment of certain payments to controlling exempt organizations
- Basis adjustment to stock of an S Corporation making charitable contributions of property
- Employer wage credit for active duty members of the uniformed services
- Election to accelerate AMT and research credits in lieu of additional first year depreciation
- 100 percent exclusion of gain on sale of qualified small business stock
- Enhanced deduction for charitable contributions of food inventory
- Tax incentives for empowerment zones
- Mine Rescue Team Training Credit
- Election to Expense advanced mine safety equipment
- Special expensing rules for certain film and television productions
