In the following podcast, Jim Wilhelm, a Director at SC&H Group, shares insights into the Tax Increase Prevention Act of 2014 (HR 5771), which extends the “tax extenders” retroactively for one year.
Dozens of temporary tax breaks, including big ones for business research, the depreciation of fixed assets, wind power and foreign profits, were renewed by the U.S. Senate recently with the passage of the Tax Increase Prevention Act of 2014 (HR 5771). This new bill puts to rest worries that further delays dealing with the so-called tax extenders could impact the approaching tax-filing season.
The one-year retroactive extension of the tax extenders effectively allows taxpayers to claim the popular, but temporary incentives on their 2014 returns filed in 2015. Without this, individuals would be unable to claim certain deductions, and various business and energy incentives would otherwise be unavailable.
The new law does not make permanent any of the extenders – nor extends any of them for the usual two-year period customary for most recent extenders legislation. Instead, the new law punts the ultimate fate of the extenders for the 2015 tax year and beyond to the 114th Congress.
If you have any questions about this content, or are interested in learning how this new legislation can impact your tax planning efforts, we welcome you to contact our experts from the SC&H Group’s Tax services team here.
In addition, SC&H Group is offering this in-depth white paper, which offers additional analysis and insights into this new legislation.