To Our Clients and Friends:
Year-end planning will be challenging again this year. Unless Congress acts, a number of popular deductions and credits that expired at the end of 2014 won’t be available for 2015. Deductions not available this year include, for example, the election to deduct state and local sales taxes instead of state and local income taxes and the above-the-line deductions for tuition and educator expenses, generous bonus depreciation and expensing allowances for business property, and qualified charitable distributions that allow taxpayers over age 701/2 to make tax-free transfers from their IRAs directly to charities. Of course, Congress could revive some or all of the favorable tax rules that have expired like they have done in the past. However, which actions Congress will take and when they will be taken remains to be seen.