More than 50 tax credits will expire on New Year’s Eve, depriving businesses and individuals the relief they once enjoyed for common expenditures such as buying racehorses and building NASCAR tracks.
The expiration of these provisions could threaten certainty in financial markets, according to business analysts at Mondaq.
“If the past is prologue, some—but not all—of these provisions will be extended, but we will not know until much later in 2014 which ones will be extended, whether they will be extended with modifications, how long they will be extended, whether the extension will be retroactive and who will be stuck “paying” for any such extension,” they wrote. “Still, despite the history of on-again, off-again extensions, it is risky to assume that any particular provision will be extended simply because it has been extended in the past.”
Many of the IRS carve outs were developed during the 2008 TARP bailout and accompanying energy bills and have been renewed and extended over the years.
The federal government is expected to miss out on more than $75 billion if it extends all of these tax credits, according to the Congressional Research Service.
The expiring tax breaks include widely used credits, such as the deductions of state and local sales taxes and corporate research and developments deductions, but not every break seems essential. Here are the 10 silliest credits we’ll miss out on in 2014.