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Tax Extenders Bill

Posted by Admin Posted on Dec 19 2015


Congress has passed the latest tax extenders bill (signed by President on December 18, 2015) with a new wrinkle-some items are now permanent, some items are extended for five years, and some for two years (2015-2016).  We will list some of the changes below:


Individual Permanent Changes:


Sales tax deduction.


American Opportunity Credit (for education).


$250 Teachers Deduction (expanded starting in 2016).


Donation of IRA to charity for those over 70 1/2 years old.


Business Permanent Changes:


$500,000 Section 179 deduction for equipment & certain real property.


Research Tax Credit.


15 year depreciation for qualified leasehold improvements, restaurant property, and retail improvements.


W-2's & 1099-MISC's will be due by January 31 (starting in 2017 for 2016 returns).


Five-Year Extensions for Businesses:


Bonus depreciation of new equipment (50% for 2015-17), 40%-2018, 30% 2019.


Work Opportunity Credit.


Two-Year Extensions for Individuals:


Tuition Deduction.


Residential Energy Tax Credit (up to $500 lifetime).


Mortgage Insurance Premium Deduction.


Mortgage Debt Exclusion (up to $2 million for married joint).