Tax Extenders - Tax Year 2015

Published: 12/21/2015 5:03:22 PM

On December 18, 2015, the President signed into law the Protecting American from Tax Hikes Act of 2015 (PATH Act). The following (along with others) have been reinstated retroactive to January 1, 2015.

Educator expenses. The new law makes the adjustment to income for qualified expenses of elementary and secondary school teachers permanent. The law also indexes the current expense cap of $250 for inflation beginning in 2016.

State and local general sales taxes.

Charitable contributions of IRA distributions.

Enhanced Section 179 expense. A temporary Section 179 expense limit of $500,000 and investment limit of $2 million before phaseout was made permanent.

Special depreciation allowance. The provision extends the special depreciation allowance for property acquired and placed in service during 2015 through 2019. The special depreciation percentage is 50% for property placed in service during 2015, 2016, and 2017, and phases down to 40% in 2018 and 30% in 2019.

The TaxBook News - Release Date: 12/21/2015