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Breaking News - December 2015
President Obama signed the "Protecting Americans from Tax Hikes" (PATH) Act of 2015 into law on December 18, 2015. This act makes permanent over 20 key tax provisions and also extends other temporary provisions for several years. The PATH Act will provide more certainty for tax planning going into 2016 and future years.
Some of the most relevant provisions made permanent are:
- Section 179 expensing up to $500,000 with a $2 million investment limit (indexed for inflation)
- State and local sales tax deduction
- American Opportunity Tax Credit
- Teacher's $250 classroom expense deduction
- Child Tax Credit
- Charitable Distributions from IRAs (if over age 70 ½)
- Research and development credit
Some of the most relevant provisions extended are:
- Bonus depreciation (extended through 2019)
- At 50 percent for 2015-2017;
- At 40 percent in 2018; and
- At 30 percent in 2019.
- Work Opportunity Tax Credit (extended through 2019)
- Discharge of qualified principal residence indebtedness (extended through 2016)
- Mortgage insurance premium deduction (extended through 2016)
- Higher education deduction (extended through 2016)
- Several energy provisions for both individuals and businesses (see link below)
For more information on the Act see this special CCH Tax Briefing or contact our office.
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