Just Passed – the Protecting Americans from Tax Hikes (“PATH”) Act
On December 18th, the Senate passed the PATH Act and made it official law. Many popular tax breaks were set to expire on 12/31/2014 unless extended. Most of them are now extended and some have been extended permanently. What does this mean for you? And should you do anything before 12/31/15 to take advantage of these new current extender laws?
Breaks Made Permanent
• Enhanced Section 179 expense election
• Depreciation-related breaks for qualified leasehold-improvement, restaurant and retail improvement property
• Research credit
• Reduction in S corporation recognition period for built-in gains tax
• Transit benefit parity
• Deduction for charitable contributions of food inventory
• Specials rule for contributions of capital gain real property made for conservation purposes
• IRA distributions to charity
• Deduction for certain expenses of elementary and secondary school teachers
• State and local sales tax deduction
• Small business stock gains exclusion
• Enhanced child credit
• American Opportunity credit
Breaks Extended Through 2019
• Bonus depreciation
• Work Opportunity credit
• New Markets credit
Breaks Extended Through 2016
• Empowerment Zone tax incentives
• Mortgage debt forgiveness exclusion
• Deductibility of mortgage insurance premiums
• Qualified tuition and related expenses deduction
• Various energy-efficiency tax credits
If you think one of these extenders may affect your business or tax picture, give us a call to discuss.
ShareThis