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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).