Recent Tax Updates

Extended Individual Provisions Applicable for Tax Year 2014 Only


The following individual provisions have been extended for one year and are now applicable for 2014 federal returns:

  • Educator Expense Deduction – Form 1040, line 23
  • Tuition and Fees Deduction - Form 8917
  • Itemized Deduction for Sales Tax – Schedule A, line 5
  • Mortgage Insurance Premiums continue to be deductible as qualified residence interest
  • Exclusion of gain from income of foreclosed home mortgage debt (Form 982, line 1e)
  • 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
  • Tax-free distributions from IRAs for charitable purposes
  • Nonbusiness Energy Property Credit – Form 5695, Part I
  • Contributions of capital gain real property made for conservation purposes (50% limitation applies instead of 30% limitation)