10 Updates

Yes Virginia, There Is A Tax Extender Bill In Congress

Jan 1 2014, 2:22pm CST | by

When you woke up this morning, it wasn’t just your pants and dignity that were missing. Also gone were the R&D credit, bonus depreciation, and the deduction for qualified tuition. In all, 55...

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28 weeks ago

Yes Virginia, There Is A Tax Extender Bill In Congress

Jan 1 2014, 2:22pm CST | by

When you woke up this morning, it wasn’t just your pants and dignity that were missing. Also gone were the R&D credit, bonus depreciation, and the deduction for qualified tuition.

In all, 55 provisions of the Internal Revenue Code died an unceremonious death as the possum dropped last night, but understand – this is nothing new. The Code is about as permanent as a Kardashian marriage, with provisions routinely being written for a finite period, expiring, and then either proactively or retroactively being extended. It’s the worst business model imaginable – particularly because many of these short-term provisions were written specifically as business incentives, yet there tenuous nature makes it impossible for businesses to plan for them – but it’s a model that Congress has maddeningly embraced.

Consistent with this cycle, Congress is currently working to resurrect the dead provisions. Senator Harry Reid (D-NV), recently introduced Senate Bill 1859, which would extend the overwhelming majority of the expired provisions. But don’t get too excited; the extensions would only be through the end of 2014, which means we’ll be right back in this will-they-or-won’t-they mess next December.

So what would be extended by Senate Bill 1859? It’s times like this I wish I wrote for Bleacher Report, because I’d put each provision on a separate page in a gallery, make you click through all 50-plus of them, and get rich off the ad revenue. But since Forbes doesn’t care about ad revenue*, I’ll just list them out here. Remember, all provisions would be extended through December 31, 2014.

  • The Heath Care Tax Credit.
  • $250 deduction for certain expenses of K-12 teachers.
  • Exclusion of up to $2,000,000 of cancellation of indebtedness from a qualified principal residence (see here for a detailed explanation ).
  • Deduction for state and local sales taxes in lieu of income taxes.
  • Above-the-line deduction for qualified tuition.
  • Up to $100,000 of tax-free distributions allowed from the IRA of someone aged 70 ½ or older directly to a charitable organization.
  • The R&D Credit.
  • The New Markets Tax Credit.
  • 15-year depreciation life for qualified leasehold improvements, restaurant buildings and retail improvements.
  • 50% bonus depreciation.
  • The Section 179 limit would remain at $500,000 (without an extension, it plummets to $25,000).
  • 100% exclusion available for the sale of qualified small business stock held longer than five years (see here for a detailed explanation ).
  • Abbreviated 5-year recognition period for S corporation built-in-gains (see here for a detailed explanation ).

Govtrack.us gives the bill a 20% chance of being enacted. Realistically, while many of these provisions enjoy mutual support from both political parties, others, such as the exclusion for principal residence COD and the various depreciation benefits, are less universally backed. As you might imagine, if even ONE of the provisions becomes a political bargaining chip, it could hold up the extension process for months. And as I discussed above, this largely defeats the purpose of many of the provisions, because their sole goal is to provide incentive to businesses; incentive to buy, to expand, and to invest in themselves. It’s awfully hard for a provision to accomplish this goal when it, you know…no longer exists.

*not accurate. Forbes cares a great deal about ad revenue.

Follow along on twitter @nittigrittytax

Source: Forbes Business

 
Update
10

6 weeks ago

RM47mil KWSG contributions still unclaimed

Jun 9 2014 7:54am CDT | Source: Business Times Malaysia

Cambodia's Famous Battambang Circus
KUALA LUMPUR: About RM47 million of contributions in the Teachers Provident Fund (KWSG) still remain unclaimed, the Dewan Rakyat was told today. ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
9

6 weeks ago

Gold shop lost almost RM1mil

Jun 9 2014 3:50am CDT | Source: Business Times Malaysia

Collingwood Magpies Training Session
KANGAR: A gold shop owner lost almost RM1 million after after the safe on in his shop was broken into by robbers. ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
8

6 weeks ago

Motion to debate MAS losses in Dewan Rakyat rejected

Jun 9 2014 3:39am CDT | Source: Business Times Malaysia

Federal Aviation Administration Bans All US Flights To Israel
KUALA LUMPUR: AN emergency motion to debate the losses incurred by Malaysia Airlines last year, amounting to RM1.2 billion was rejected by the Dewan Rakya ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
7

6 weeks ago

MH370 Tragedy: Hisham: RM27.6 mil spent on 1st phase of SAR

Jun 9 2014 2:11am CDT | Source: Business Times Malaysia

KUALA LUMPUR: Malaysia spent some RM27.6 million in its first phase of the search operations for missing Malaysia Airline flight MH370, said Acting Transport Minister, Datuk Seri His ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
6

6 weeks ago

9.1m litres of diesel seized in a month

Jun 8 2014 1:11am CDT | Source: Business Times Malaysia

INDIA-CHINA-DIPLOMACY-TRADE
PUTRAJAYA: The Domestic Trade, Cooperatives, and Consumerism ministry has seized some 9.1 million litres of diesel and property worth RM58 million since mounting ‘Operasi Diesel Sela ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
5

6 weeks ago

Girl, 9, awarded RM2.78m compensation for medical negligence

Jun 6 2014 4:56am CDT | Source: Business Times Malaysia

Government Weekly Cabinet Meeting
KUALA LUMPUR: A nine-year-old girl who suffered brain damage during her birth at a government hospital was awarded over RM2.78 million in compensation ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
4

6 weeks ago

Malaysia's total trade in April up 12pc

Jun 5 2014 11:52pm CDT | Source: Business Times Malaysia

KUALA LUMPUR: Malaysia's total trade in April 2014 rose by 12 per cent from a year ago to RM123.86 billion due to growing trading activities, International Trade and Industry Minister Datuk Se ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
3

6 weeks ago

Works Ministry to spend RM20m for upgrading works at 50 accident black spots

Jun 4 2014 11:35pm CDT | Source: Business Times Malaysia

Iskandar Johor Open - Previews
JOHOR BARU: The Works Ministry will implement upgrading works at 50 accident prone locations in the country that have been identified this year involving a ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
2

6 weeks ago

Najib launches loan scheme for Ramadan traders

Jun 4 2014 10:24pm CDT | Source: Business Times Malaysia

EurAsia Cup presented by DRB-HICOM - Day One
PUTRAJAYA: Prime Minister Datuk Seri Najib Razak today launches RM45 million Ramadan Bazaar Scheme 2014. ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
1

7 weeks ago

Residents bring up objection against Kidex to Suhakam

Jun 4 2014 4:49am CDT | Source: Business Times Malaysia

PETALING JAYA: A group of 20 Petaling Jaya residents held a meeting with the Human Rights Commission of Malaysia (Suhakam) over their objection against the proposed RM2.2 billion Kinra ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 

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