Recently Congress passed the 2015 Extender Bill, Protecting Americans from Tax Hikes Act (PATH). Some provisions were made permanent, others have been extended and others have been modified. Below are a few of the highlighted sections of the PATH Act:
- Section 179 expensing made permanent at $500,000 with a $2 million purchasing limit. Heating & air units put in place after the 2015 tax year are eligible property. Certain real property as eligible made permanent.
- Qualified leasehold improvements, qualified retail improvements and qualified restaurant property made permanent 15 year property.
- Bonus depreciation extended to Dec 31, 2019, decreasing each year until 2019. The limit is 50% for years 2015 – 2017.
- Reduced built in gains recognition period of 5 years for S corporations made permanent.
- IRA transfers to a charitable organization in lieu of RMDs made permanent.
- K-12 teacher classroom expenses deduction made permanent.
- Enhanced child tax credits made permanent.
For more information, visit http://www.gop.gov/bill/house-amendment-2-to-the-senate-amendment-to-h-r-2029-protecting-americans-from-tax-hikes-path-act-of-2015/. Contact one of our tax professionals at 1-866-287-9604 with any questions.