If you filed your tax return last year or prior, you may have noticed some legislation which extended some tax provisions that are no longer applicable. Last year, Congress approved some legislation that was highly anticipated. However, this tax year, we lament in the tax provisions of seasons past. The following are no longer applicable, but were important parts of the tax code back in the day:
- 50% Bonus Depreciation
- Exclusion of gain from income for foreclosed home mortgage debt on Form 982
- Depreciation of leasehold restaurant or retail upgrades over 15 years
- Distributions from an IRA for a charity
- Form 5695’s energy property tax credit for nonbusiness
- Previous 30% limitation of capital gain real property contributions made for conservation increased to 50% limitation.
In addition, many expense provisions get reduced or become completely obsolete as the years pass. For example, the Section 279 expense provision was significantly reduced to $25,000 for the 2014 tax year, with a maximum cost of $200,000. The category of qualified real property was destroyed during that tax year too.
The tax legislation is constantly changing and can affect what you do with your tax return. Remember to stay informed, via our blog, or your tax advisor for more information regarding new or upcoming legislation as well as which provisions will join the list of those we’ve seen come and go.