The following items have expired at the end of 2013 or will expire at the end of 2014. However, Congress can still retroactively reinstate these items for the 2014 tax season. In 2011 they waited until December 31 to pass tax extensions, many of which are on this list. We will be monitoring these items through the end of the year.
The following is a summary of the more common expiring provisions.
- The $250 above-the-line deduction for certain expenses of elementary and secondary school teachers, also referred to as the eligible educator deduction [§62(a)(2)(D)].
- Deduction for state and local general sales tax as an itemized deduction, instead of deducting state and local income tax [§164(b)(5)].
- The above-the-line deduction for qualified tuition and related expenses [§222(e)].
- The itemized deduction for mortgage insurance premiums as qualified residence interest [§163(h)(3)].
- The exclusion of debt discharge income from gross income under §108(a)(1)(E), known as the qualified principal residence indebtedness exclusion.
- The credit for health insurance costs of eligible individuals, reported on Form 8885, Health Coverage Tax Credit [§35(a)].
- The parity for the exclusion from income for employer-provided mass transit passes and parking benefits [§132(f)].
- The credit for research and experimental expenses [§41(h)(1)(B)].
- The work opportunity credit [§51(c)(4)].
- The Indian employment tax credit [§45A(f)].
- The provision to treat qualified leasehold improvement property, qualified restaurant property, and qualified retail improvements as 15-year MACRS property [§168(e)(3)(E)].
- The employer differential wage payment credit for payments to individuals performing active duty military service [§45P(b)(1)].
- The 100% exclusion for gain on the disposition of qualified small business stock; the pre-2009 50% exclusion is reinstated [§1202(a)(4)].
- The additional first-year depreciation (50% bonus depreciation) [§168(k)].
- The increased dollar limitations for §179 expensing of $500,000 and $2,000,000 [§179(b)(1) and (2)].
- Qualified real property included in definition of §179 property [§179(f)].
- The reduced five-year recognition period during which an S corporation is subject to built-in gains tax; the 10-year recognition period is reinstated [§1374(d)(7)].
- The enhanced charitable deduction for the donation of food inventory [§170(e)(3)(C)].
- The provision for tax-free distributions from an IRA if distributed to a qualified charitable organization [§408(d)(8)].
- The special rules for contributions of capital gain real property for conservation purposes [§170(b)(1)(E)].
- The new markets tax credit [§45D(f)(1)].
- Election to deduct certain film and television production costs [§181(f)].
- Deduction for energy efficient commercial buildings [§179D(h)].
- Credit for the construction of new energy efficient homes [§45L(g)].
- Manufacturer’s credit for energy efficient appliances [§45M(b)].
- Credit for nonbusiness energy property [§25C(g)].
- Credit for two- or three-wheeled plug-in electric vehicles [§30D(g)].
- AMT refundable credit for long-term unused minimum tax credit [§53].
There are many other provisions that expired at the end of 2013.
The alternative motor vehicle credit for qualified fuel cell motor vehicles expires at the end of 2014 [§30B(k)(1)].
List provided by NATP
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