Our rulers in DC love to tinker with the tax code and add special temporary tax breaks so that the tax environment is in constant evolution. As these news items explain, several temporary tax breaks expire at midnight tonight.
Congress letting billions in tax breaks expire at year’s end
What they don’t mention is the fact that the Section 179 expensing election maximum deduction drops from $500,000 for 2013 to just $25,000 in 2014.
If recent history is any guide, there will most likely be an early 2014 push by our rulers in DC to reinstate many of these expired tax breaks retroactively to the beginning of the year. Of course, there is no guarantee that this will happen; so don’t make plans assuming it will. As always, the actions and inaction of our supreme rulers in DC do nothing but add to the uncertainty about the business and tax environments.
Tax Guru - Ker$tetter Letter 