Our tax attorneys review several important tax extensions here, which include tax-free charitable contributions, tuition deductions, and more. One significant tax break is available to small companies that deduct costs of equipment, software, and property at the time they are purchased. Last year the limit was dropped to $25,000 from $500,000. One of the many tax extensions includes bringing back the $500,000 expense cap for the 2014 tax year.
Taxpayers only have a few days to take advantage of these tax breaks before they expire again. In order to benefit from the tax extensions, taxpayers will need to time charitable contributions, tuition expenses, and other finances with respect to the deadline.
Many taxpayers have not had time to prepare for these short-term changes. Now time is of the essence. Updating tax plans hastily could result in errors. Consult with a tax attorney to ensure all possible tax benefits are taken in time and documented properly.
Regular reviews of one’s tax plan to address state and federal law changes helps to minimize the tax burden. However, the current tax extensions are only available for an extremely limited time. Long-term tax breaks have not yet been established by lawmakers. It remains to be seen if some of these tax breaks will be made permanent or completely eliminated; this decision is on lawmakers’ tables in 2015. Our tax attorneys post updates as they happen on Twitter and Facebook.