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:
Residential Energy Tax Credit (up to $500 lifetime).
Mortgage Insurance Premium Deduction.
Mortgage Debt Exclusion (up to $2 million for married joint).