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Protecting Americans from Tax Hikes (PATH) Act of 2015

Protecting Americans from Tax Hikes (PATH) Act of 2015
On December 18, Congress passed and the President signed into law the "Consolidated Appropriations Act, 2016" and the "Protecting Americans from Tax Hikes (PATH) Act of 2015," funding the government and providing a number of significant tax changes.

The PATH Act retroactively extends the 50 or so taxpayer-favorable tax "extenders"-temporary tax provisions that are routinely extended by Congress on a one- or two-year basis, that had been expired since the end of 2014. It made permanent more than a dozen individual and business extenders (including the enhanced child tax credit, American opportunity tax credit and earned income tax credit; parity for exclusion from income for employer-provided mass transit and parking benefits; the deduction of State and local general sales taxes; the research credit; and 15-year straight-line cost recovery for qualified leasehold improvements qualified restaurant buildings and improvements, and qualified retail improvements). It also contains a delay in the Code Sec. 4191 2.3% excise tax on medical devices and provisions on Real Estate Investment Trusts (REITs), IRS administration, the Tax Court, and miscellaneous other tax rules


These provisions can produce significant savings for taxpayers, but you may need to act soon (by December 31, 2015) to take advantage of them on your 2015 tax return. Here's a brief summary of the extended breaks that may be most likely to benefit you or your business.


Individual tax breaks
• Deduction for state and local sales tax in lieu of state and local income tax (extended permanently)
• Tuition and fees deduction (extended through 2016)
• Ability of taxpayers age 70½ or older to make a direct tax-free rollover from an IRA to charity (extended permanently)
• Home debt forgiveness exclusion (extended through 2016)
• Small business stock gains exclusion (extended permanently)


Business tax breaks
• Bonus depreciation (extended through 2019)
• Enhanced Section 179 expensing $500,000 limit (extended permanently)
• Accelerated depreciation for qualified leasehold-improvement, restaurant and retail-improvement property (extended permanently)
• Transit benefit parity (extended permanently)
• The research credit (extended permanently)
• The Work Opportunity credit (extended through 2019)
• Reduction in Built in Gains recognition period for S Corps (extended permanently)
• Gain exclusion for qualified small business stock (QSBS) is retroactively restored (extended permanently)

 And many more.  Contact The Phillips Organization to find out more information

 

 

 

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