| JANUARY 12, 2015 -- The United States Senate, on a bipartisan vote of 76-16, extended about 50 expired tax code provisions. President Obama is expected to quickly sign the extender package. These extenders are retroactive for 2014 only and taxpayers have 15 days to decide if and how to use these tax breaks. The retroactive extension means tax payers will be operating under an expired tax code again in 2015. Grangers should consult their accountants and tax preparers immediately to determine how to best take advantage of these extenders for 2014.
Here are a few of the tax breaks you may be most interested in:
• Section 179 - Allows a higher deduction (up to $500,000) on capital expenditures like machinery and equipment.
• Bonus depreciation - Extends the faster rate of depreciation for agriculture producers
• Biodiesel - Continues the $1/gallon tax credit for biodiesel production
• Wind energy - Continues the wind energy tax credit
• Research and Development - Continues popular credits for research and development
• Distressed areas - Includes an incentive for businesses to invest in economically depressed areas
• The disabled - People with disabilities may now open tax-free savings accounts (new provision)
• Sales taxes - Allows a sales tax deduction for residents of states that have no income tax
• Charitable contributions - Senior citizens may exclude from their income up to $100,000 in charitable donations from their retirement accounts
• “Pork” - Several special preferences to entities important to certain members of Congress
The 113th Congress, one of the most unproductive and least popular in history, is now over. Only about 280 bills have become law the last two years, the lowest number in 20 years. The 114th Congress begins January 6, 2015. |
