Congress left town last month without acting on a “tax extenders” bill. Those are the tax credits, deductions and exclusions that expire each year – but always get extended for another year.
Here are some of the key tax provisions that expired at the end of last year.
- The research and development tax credit.
- The 100 percent bonus depreciation deduction – which means the lower 50% bonus depreciation deduction applies for qualified property acquired and placed in service this year.
- The AMT “Patch” – which means some 34 million taxpayers will incur the tax this year, accordingly to the Congressional Research Service.
- A reduced Section 179 expensing limit. For tax years beginning in 2012, the expensing election is reduced to $139,000 from $500,000 last year. And the investment ceiling amount is reduced to $560,000 down from $2 million last year. For tax years beginning after 2012, the limit is further reduced to $25,000 with a $200,000 ceiling.
We’ll see what happens with the tax extenders when Congress comes back to town. Stay tuned.
No Comments
No comments yet.
RSS feed for comments on this post.
Sorry, the comment form is closed at this time.