As you begin year-end planning, keep in mind that some tax breaks you may have benefitted from in prior years have not yet been extended for 2015. Here are a few that expired at the end of 2014 and are not currently available.
- Educator expense deduction. If you’re a teacher or other eligible educator such as an aide or a principal, this above-the-line deduction would let you subtract $250 of qualified unreimbursed expenses. Those are expenses you paid or incurred for books, supplies, computers and other equipment, and supplementary materials that you use in the classroom.
- State and local sales taxes. This itemized deduction gave you the option to deduct state and local sales taxes instead of state and local income taxes.
- Deduction for qualified tuition. This was an above-the-line deduction of up to $4,000 for qualified tuition and related expenses.
- Charitable distributions from your IRA. This break let you exclude up to $100,000 from your income for donations paid directly to a qualified charity from your IRA if you were age 70½ or over.
- Bonus depreciation. This special depreciation allowance would let you deduct up to 50% of the cost of qualifying property in the year of purchase.
- Enhanced Section 179 expensing. While you can still elect to immediately expense up to $25,000 of business assets that you purchase and place in service during 2015, the increased expensing limit of $500,000 is not currently available.
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