Alfred A Cohen, CPA

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ALFRED A. COHEN CPA

 

 

 

 

On  December 19th the President signed into law the "Tax Increase Prevention Act of 2014" (TIPA), which extends a package of expired or expiring individual, business, and energy provisions. These "extenders" are a varied assortment of more than 50 individual and business tax deductions, tax credits, and other tax-saving laws which have been on the books for years but which technically are temporary because they have a specific end date. The new legislation generally extends these tax breaks-most of which expired at the end of 2013-for one year through 2014. In addition, the legislation provides for a new type of tax-advantaged savings program to help in meeting the financial needs of disabled individuals, an "Achieving a Better Life Experience" (ABLE) account, and also contains several other miscellaneous provisions.

The extenders include the increased Section 179 expensing of business assets purchased, the 15 year write-off for qualifying leasehold improvements, restaurant buildings and improvements and 50% bonus first year depreciation.

The act extends a host of individual tax  provisions including the above the line deductions for higher education expenses and educator expenses, deduction for state and local sales tax and mortgage insurance premiums, exclusion for discharge of qualified home mortgage debt, allowance for  tax free charitable transfers from a taxpayers IRA and  excludable transportation benefits.

The Affordable Care Act went into effect in 2014 for individuals. This act requires all taxpayers to be covered by health insurance or be subject to penalties. Coverage can be obtained from your employer, a health insurance provider or the Health Exchange. If you have purchased via the Health Exchange remember your subsidy is based on your income and will  be reconciled on your 2014 income tax return. If health insurance coverage is available from your employer, you are not eligible for subsidies. You will be required to state on your 2014 tax return whether or not you had health insurance coverage in 2014.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Alfred A Cohen, CPA  52 N Main Street, Marlboro, NJ 07746   732-577-9300

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52 N. Main St, Marlboro, New Jersey , America

Tel: (732) 577-9300, Mail: info@aaccpa.com