Tax Extenders

Congress passed on December the 18th a bill concerning tax extenders among other issues. The following provisions were made permanent:

1. The section 179 depreciation limit was increased to $500,000 and indexed to inflation for future years. This is very significant since the limit was only $25,000.
2. The research credit was made permanent.
3. The tax free distribution from IRA accounts by those aged 70 and 1/2 to charities was made permanent.
4. State and local sales tax itemized deductions will be available and especially helpful in those states without income taxes.


Some provisions were extended but not permanently such as bonus depreciation, work opportunity tax credit, exclusion from income for forgiveness of debt on a home foreclosure or short sale, and deductions for private mortgage insurance premiums.