On December 19, 2014, President Obama signed into law The Tax Increase Prevention Act of 2014 (HR5771), which which temporarily extends over 50 expired incentives for individuals, businesses and energy through 2014.  The law also creates Achieving a Better Life Experience (ABLE) accounts set up for the benefit of persons with disabilities.  Extenders included in the legislation are the state and local sales tax deduction, IRA distributions to charity, and the above-the-line deduction for higher education.

Key provisions in the bill particularly impacting construction and real estate businesses include the extension of 50% bonus depreciation and qualified leasehold improvements for the 2014 tax year.  Under HR 5771, qualified leasehold improvement property will continue to be eligible for 50% bonus depreciation.  This property is defined in IRC 168(k)(3) as new improvements to an interior portion of a building that qualifies as nonresidential real property.  In addition, this treatment is available as long as the improvements are made by the lessor more than three years after the date the building was placed in service.

Notable exceptions to qualified leasehold improvement treatment include: elevators, escalators, structural components benefiting a common area, or the internal structural framework of the building.  For more information or to take advantage of the new legislation, please contact Eric L. Bach & Associates for a free consultation.

Think things can be as easy as a simple flat tax?  Think again.  Legislators never seem to make things that easy – they complicate as many things as they can.  So, in an effort to give you a break from your boring taxes, here are a few of some of the most ridiculous taxes across the country.

Arkansas: Pet Grooming Tax

Among the services that the state subjects to the 6% sales tax are body piercing, gutter cleaning, and pet grooming.

California:  Ottoman Empire Victims’ Exemption

If you were persecuted between 1915 and 1923, you get a tax exemption.

Hawaii:  Tree Deduction

If your tree was approved by an arborist advisory committee and you get the right notarial stamp, you are eligible for a $3000 deduction.

Maryland: Oyster Break

Maryland offers what is called the aquaculture float credit, which is available to people who harvest oysters, but not any other shellfish.  Strange.  Why not crabs or mussels?

New Jersey: Helping Families

You get a break if you spend more than $35.64 on family leave insurance.

New York: Haunted House Tax

Musical comedies, operas, and chamber music are exempt from the sales tax.  But, not a Halloween show with music, if the admission charge exceeds 10 cents.  Why this discrimination against ghouls and goblins?

South Carolina: Aid For Deceased Deer

You get $50 off your taxes if your deer carcass helps the needy.  I guess if you hit a deer in South Carolina, just remember to bring it with you and donate it.