Protecting Americans from Tax Hikes (PATH) Act of 2015
Late last week, Congress passed and the President signed the PATH Act of 2015. Here are a few highlights:
Business Tax Provisions:
- Permanent increase in IRC Section 179 deduction to $500,000. Deduction begins to phase-out when eligible property exceeds $2,000,000.
- Research and Development credit now permanent.
- 15-year straight-line depreciation for qualified retail improvements, qualified restaurant buildings and improvements, and qualified leasehold improvements.
- Exclusion of 100% gain on certain small business stock.
- Work opportunity tax credit extended through 2019.
- Bonus depreciation extended through 2019.
- Deduction for energy-efficient commercial buildings extended through 2016.
- The 2.3% medical device excise tax will not apply to sales during 2016 and 2017
Individual Tax Provisions:
- The deduction for state and local sales taxes in lieu of a deduction for state and local income taxes made permanent.
- Permanent opportunity for taxpayers who are least 70 ½ years old to make up to $100,000 in qualified charitable distributions from individual retirement plans without including the distributions in income.
- American Opportunity Tax Credit on secondary education made permanent.
- The $250 deduction for expenses of teachers made permanent.
- Above-the-line deduction for qualified tuition and related expenses extended through 2016.
The new legislation offers a great deal of tax savings and opportunities for many businesses and individuals. Please contact one of our tax professionals at 616-458-1835 to discuss how these changes can benefit you.
More information about the tax extenders can be found here:
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