Key Individual and Medical Practice Tax Breaks that expired at end of 2013

• Option to deduct state and local sales taxes expired: Last year, you had the choice of claiming an itemized deduction for state and local sales taxes instead of an itemized deduction for state and local income taxes. This option was beneficial if you lived in a state with no personal income taxes or if you paid only a minimal state income tax bill.

• Super Section 179 has expired. As of right now 179 for 2014 is still limited to $25,000. Although several proposals have been made, nothing has passed to increase this.

• Bonus depreciation expired. No extensions have been made at this time.

• Charitable donations from IRAs: Last year, IRA owners who had reached age 70½ by Dec. 12, 2013 were allowed to make charitable donations of up to $100,000 directly out of their IRAs. The donations counted as IRA required minimum distributions. So well-off seniors could reduce their taxes by arranging for charitable donations from their IRAs to replace taxable IRA required minimum distributions.

• $500 credit for energy-efficient home improvements expired: Under this break, you could claim a tax credit of up to $500 for certain energy-saving improvements to your principal residence.

About the Author

Reed Tinsley CPA

This article is written by Reed Tinsley, a Houston, TX-based CPA with over 30 years of experience advising physicians and medical practices across Texas and the United States. Reed holds certifications as a Certified Valuation Analyst (CVA), Certified Healthcare Business Consultant (CHBC), and Certified Financial Planner (CFP), specializing exclusively in the healthcare sector. He is a published author, nationally recognized speaker, and trusted advisor to physicians on accounting & tax, practice management, and financial planning. Schedule a Free Consultation.