Businesses, individuals, and CPA’s around the country got an early holiday gift today as the Senate passed a tax extenders bill the President is expected to sign into law later this week.

The extender bill is quite similar to most we’ve seen in the past – this is the 6th tax extender bill passed near (or after) the end of the year in the last decade. This one puts back into place as of 1/1/14 a large number of benefits popular among taxpayers, but only keeps them in place through 12/31/14, so this debate will come again next year, but we’re happy to have these for now.

Among the more popular items extended for 2014:

• $500,000 Section 179 limitation with a $2 million investment cap, up from the $25,000/$500,000 that would have been
• 50% bonus depreciation on new fixed assets in service by 12/31/14
• The Research and Development Tax Credit
• Exclusion from income up to $2 million of debt forgiven on a principle residence foreclosure or short sale
• $250 deduction for out of pocket expenses for teachers
• Option to deduct sales taxes instead of state and local income taxes
• Deduction of certain mortgage insurance premiums
• Deduction of up to $4,000 for higher education tuition and fees
• Ability to transfer up to $100,000 from an IRA to a charity with no tax
• Ability to deduct up to $250,000 of qualified leasehold improvements up front
• 15-year life for qualified leasehold improvements