Finance & Enjoyment Blog

Denver CPA with 2014 Tax Extenders and 2015 Mileage Rate Deductions

In the recently enacted "Tax Increase Prevention Act of 2014," Congress has once again extended a package of expired or expiring individual, business, and energy provisions known as "extenders." The 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. Congress has repeatedly temporarily extended the tax breaks for short periods of time (e.g., one or two years), which is why they are referred to as "extenders." The new legislation generally extends the tax breaks retroactively, most of which expired at the end of 2013, for one year through 2014. We have pared down the list to a few of the provisions we believe will be most important to you.

Individual extenders

The following provisions which affect individual taxpayers are extended through 2014:

... the deduction for mortgage insurance premiums deductible as qualified residence interest;

... the above-the-line deduction for qualified tuition and related expenses; and

... the provision that permits tax-free distributions to charity from an individual retirement account (IRA) of up to $100,000 per taxpayer per tax year, by taxpayers age 70 and ½ or older.

Business extenders

The following business credits and special rules are generally extended through 2014:

... the research credit;

... the work opportunity tax credit;

... 15-year straight line cost recovery for qualified leasehold improvements, qualified restaurant buildings and improvements, and qualified retail improvements;

... 50% bonus depreciation (extended before Jan. 1, 2016 for certain longer-lived and transportation assets);

... the increase in expensing (up to $500,000 write-off of capital expenditures subject to a gradual reduction once capital expenditures exceed $2,000,000) and an expanded definition of property eligible for expensing;

... the exclusion of 100% of gain on certain small business stock;

... the reduction in S corporation recognition period for built-in gains tax;

Energy-related extenders

The following energy provisions are retroactively extended through 2014:

... the credit for nonbusiness energy property;

... the incentives for biodiesel and renewable diesel;

IRS Announces 2015 Standard Mileage Rates

In other news, the IRS has announced the optional 2015 standard mileage rates for use in computing the deductible costs of operating a passenger automobile for business, charitable, medical, or moving expense purposes.

Effective January 1, 2015, the standard mileage rates are:

Business use of an auto: 57.5 cents per mile that may be deducted if an auto is used for business purposes

Charitable use of an auto: 14 cents per mile may be deducted if an auto is used to provide services to charitable organizations.

Medical use of an auto: 23 cents per mile may be deducted if an auto is used to obtain medical care (or for other deductible medical reasons)

Moving expenses deduction: 23 cents per mail may be deducted if an auto is used to effect a work related move to a new home.

You can read the IRS Notice 2014-79 at

How to Use This Information

We hope this information is helpful. The end of the year and start of a new one always brings changes when it come to taxes. It can be hard to sort through, but we are always more than happy to answer any questions you may have. If you would like more details about these changes or any other aspect of the new law, please do not hesitate to call at 303-815-1100.

Posted in Rules and Regulations »

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