Congress Extends Certain Business Tax Deductions

Happy new year!

As a new year’s gift, Congress passed the Tax Increase Prevention Act of 2014 (“TIPA”).  It was signed into law on December 19th.

This law extended over 50 individual and business tax deductions and credits through the end of 2014 (they had all expired by the end of 2013).

Many are predicting that Congress will once again extend these tax breaks for 2015, but as of now they are not yet applicable to 2015.  It is possible that they could be retroactively applied to 2015 in late December 2015 (just like this year) but it would make more sense for tax planning if Congress passed a multi-year extension early in the next Congress.

Here is a list of some of the most important business tax provisions that were extended through 2014, and that may apply to the ASA community:

  • Research and Development Credit (TIPA Section 111);
  • Employer Differential Wage Credit for Payments to Military Personnel (TIPA Section 118);
  • Bonus Depreciation/Acceleration of the AMT Credit (TIPA Section 125);
  • Extension of increased expensing limitations under section 179 (TIPA Section 127);
  • Extension of temporary exclusion of 100 percent of gain on “qualified small business stock” (TIPA Section 136);
  • Extension of basis adjustment to stock of S corporations making charitable contributions of property (TIPA Section 137);
  • Extension of reduction in S-corporation recognition period for built-in gains tax. (TIPA Section 138);

This blog article does not address all tax provisions contained in TIPA, but only highlights previously-expired tax breaks that were extended and that may apply to the ASA community.  I do not provide tax advice and this blog article should not be treated as tax advice.

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About Jason Dickstein
Mr. Dickstein is the President of the Washington Aviation Group, a Washington, DC-based aviation law firm. He represents several aviation trade associations, including the Aviation Suppliers Association, the Aircraft Electronics Association, the Aircraft Fleet Recycling Association and the Modification and Replacement Parts Association.

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