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
