Tax Increase Prevention Act of 2014 (Tax extenders package)

The Senate passed the Tax Increase Prevention Act of 2014 (TIPA) (H.R. 5771) on December 16, 2014 and the President is expected to sign. The “extenders” package opens the door for significant tax savings for businesses and individuals on their 2014 returns. However, in order to take advantage of some of the benefits, tax preparers may need to take steps quickly before Jan 1, 2015. It also includes the “Achieving a Better Life Experience (ABLE) Act”, creating tax-favored savings accounts for individuals with disabilities along with some tax-related offsets. Before adjourning, Congress also approved an Omnibus Spending Agreement for fiscal year (FY) 2015, which cuts funding for the IRS. President Obama has indicated that he will sign both the Omnibus Agreement and H.R. 5771 bills as soon as they reach his desk.

Download Tax Increase Prevention Act of 2014 OverviewDownload an overview of the legislation

Highlights:

  • Over 50 extenders
  • More than 500 code changes
  • State & local sales tax deduction extended
  • Mortgage debt forgiveness exclusion extended
  • 50 percent bonus depreciation extended
  • Research tax credit available for 2014
  • Many energy incentives renewed
  • Tax-favored accounts for individuals with disabilities
  • Inflation-adjustments for civil penalties
  • FY 2015 budget cuts for IRS

Tax Increase Prevention Act of 2014