On December 17, 2015 the House approved the extenders legislation and on December 18, 2015 it was approved by the Senate and President Obama signed the bill into law.
A nice surprise was that many of the provisions were made permanent so finally we have the ability to plan our tax futures. (Just so you know, in Congress, permanent means until changed).
The permanent provisions include:
- Enhanced child tax credit
- Enhanced American opportunity tax credit
- Enhanced earned income tax credit
- Educator’s expense deduction
- State and local sales tax deduction
- Qualified charitable distributions from an IRA
- Section 179 deduction $500,000 per year on purchases up to $2 million
- Research and development credit
Provisions extended only through 2016 include:
- Cancellation of qualified mortgage debt – exclusion from income up to $2 million
- Mortgage insurance premiums deduction
- Personal energy property credit
- Tuition and fees deduction
Bonus deprecation was extended through 2019.
There are many other provisions affected by this bill. If you would like a complete list please contact us.
We are here to discuss what these extensions mean to you. Please give us a call.