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Special Edition Tax Tip Tuesday: Extenders Tax Law to Pass

Today’s special edition will address the tax package that the House passed yesterday, the Senate is expected to pass today, and the president has indicated he will sign.

In the recently passed “Protecting Americans from Tax Hikes (PATH) Act of 2015” Congress has once again dealt with the expired or expiring provisions commonly known as “extenders”. These are the 50 or so temporary tax provisions that are routinely extended by Congress on a one or two year basis and have been expired since the end of 2014.

Congress extended some through the end of 2016, extended others through 2019, and made more permanent. All items are retroactively effective to January 1, 2015.

Extended through 2016

  • Extension and modification of exclusion from gross income of discharge of qualified principal residence indebtedness

  • Extension of mortgage insurance premiums treated as qualified residence interest

  • Extension of above-the-line deduction for qualified tuition and related expenses

  • Extension and modification of credit for nonbusiness energy property

  • Extension of credit for energy-efficient new homes

  • Extension of energy efficient commercial buildings deduction

Extended through 2019

  • Extension and modification of work opportunity tax credit

  • Extension and modification of 50% bonus depreciation

Permanent Items

  • Enhanced child tax credit

  • Enhanced American opportunity tax credit

  • Enhanced earned income tax credit

  • Extension and modification of deduction for certain expenses of elementary and secondary school teachers

  • Extension of parity for exclusion from income for employer-provided mass transit and parking benefits

  • Extension of deduction of state and local general sales taxes

  • Extension of tax-free distributions from individual retirement plans for charitable purposes

  • Extension and modification of research credit

  • Extension of 15-year straight-line cost recovery for qualified leasehold improvements, qualified restaurant buildings and improvements, and qualified retail improvements

  • Extension and modification of increased section 179 expensing limitations ($500,000 limit) and treatment of certain real property as section 179 property

  • Extension of reduction in S-corporation recognition period for built-in gains tax

Disclaimer: The items included in the Tax Tip Tuesday Video Blog are informational only and are not meant as tax advice. Consult with your tax advisor to determine how any item applies to your situation. IRS Circular 230 disclosure: To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. federal tax advise contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein

Previous Editions of Tax Tip Tuesday
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