With just days before the end of the year, Congress finally passed a bill extending over 55 tax breaks for individuals and businesses. The key items that were extended until 12/31/14 are:
Individuals
- Teacher’s Credit ($250) – above the line deduction for teaching supplies
- Ability to exclude personal residence Cancellation of Debt Income (for foreclosures and short sales)
- Mortgage Insurance premiums (aka PMI) are deductible as mortgage interest
- Sales Tax is deductible (important for people in states without state income tax)
- Tuition Deduction
- Charitable contributions can count as RMDs from your IRA
Businesses
- Multiple beneficial depreciation rules and limits