Tax Planning Alert: 55 Recently Expired Tax Breaks

There are various tax provisions which expired on December 31, 2013. As your trusted financial adviser, we want you to have this information as you conduct your tax planning for 2014.

While some of these tax breaks lapse almost every year, Congress has historically renewed them at the last hour or retroactively to the beginning of the year. With no guarantee of Congress' plan, it is important for businesses and individuals to proactively plan and budget their finances. Some of the breaks which expired were little known by the general public, but some are more well known. A few of the more common tax breaks which will not be around for 2014 (unless Congress extends the provisions) are the:

• Deduction for state and local sales tax, which benefits people who live in the nine states without state income tax, like Tennessee.
• Benefits for teachers who buy classroom supplies with their own money.
• Breaks that let businesses write off capital investments faster (Bonus Depreciation and Sec. 179 expensing of equipment).
• Research and development credit.

With a divided Congress and important issues coming before them in the new year, businesses and individuals cannot be guaranteed of tax breaks being extended. While the future is uncertain, we believe that tax planning is as important as tax preparation and filing.

We wish you a successful, safe, and prosperous New Year!