On Dec. 3, 2014, the House of Representatives passed H.R. 5771, the Tax Increase Prevention Act of 2014, by a strong bipartisan vote of 378-46. The House bill includes a one-year extension of several expired tax provisions that benefit realtors and their clients, including tax relief for mortgage debt forgiveness. The relief is effective retroactive to Jan. 1, 2014, but expires again in just a few weeks, on Dec. 31, 2014.
Also included in the bill are one-year extensions of the 15-year depreciation schedule for leasehold improvements, the deduction of mortgage insurance premiums, and the deduction for energy efficient commercial buildings.
With time running out before the expected Dec. 11 adjournment of the Congress, House leaders put together H.R. 5771 as a last effort to prevent tax increases for many Americans for 2014. While there are many in the Senate of both parties who are disappointed with only a one-year extension of the expired provisions, H.R. 5771 is likely to pass as the last best alternative to no tax extenders bill at all.
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