Tax Tip Tuesday: Current Status of the Tax Extender Legislation
Today we will revisit an important topic that affects many of our clients — the current status of the tax extender legislation.
Unfortunately, it is still in limbo.
The New Ways and Means Committee Chairman Kevin Brady was called on by major industry groups to address tax extenders less than a day after he won the position, which was recently vacated by new House Speaker Paul Ryan (R-W).
This year, like last, these temporary tax provisions have been expired for almost a year. This makes it difficult to engage in forward-looking tax planning. It also forces individuals and businesses to plan out their finances for the current year under a variety of different scenarios that reflect the possible actions (or lack thereof) that could take place before year-end.
A few of the big items that need to be extended include an increase in Section 179 expensing upward from the current $25,000 level; reinstatement of 50% bonus depreciation; and many other individual and business provisions.
Another question that Congress needs to answer is whether they will make some of these extender provisions permanent or continue to deal with them each year.
We will let you know as soon as we have more update on this.
Disclaimer: The items included in the Tax Tip Tuesday Video Blog are informational only and are not meant as tax advice. Consult with your tax advisor to determine how any item applies to your situation. IRS Circular 230 disclosure: To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. federal tax advise contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein