Legislation that will extend a number of tax provisions
that expired on December 31, 2014, was introduced on December 15, and is
expected to be passed by Congress and signed by the President within the next
few days. It’s noteworthy that several
provisions are expected to be made permanent, and others will be extended for
multiple years.
We’ll provide a more comprehensive summary of the
legislation once it officially enacted, but there a few key provisions of which
we want you to be aware:
Business Provisions
·
The annual limit for expensing certain asset
additions under IRC Sec 179 is permanently increased to $500,000. And beginning in 2016 the limit will be
indexed for inflation.
·
Bonus depreciation is extended for the years
2015 through 2019. Fifty percent bonus
depreciation is provided for 2015-2017, forty percent bonus depreciation is
provided for 2018, and thirty percent bonus depreciation is provided for 2019.
·
The research tax credit is permanently extended.
Individual Provisions
·
Key provisions that are being made permanent
include:
o The
child tax credit
o The
American Opportunity credit
o The
deduction for certain classroom expenses for elementary and secondary school
teachers
o The
deduction for state and local general sales taxes in lieu of state and local
income taxes
o The
ability of individual at least 70 ½ years of age to exclude from gross income
qualified charitable distributions from IRA accounts.
·
Provisions extended through 2016 include:
o The
exclusion from gross income for the discharge of qualified principal residence
indebtedness,
o Allowing
mortgage insurance premiums to be deducted as qualified residence interest,
and,
o The
credit for nonbusiness energy property.
We’ll provide a more comprehensive summary of the
legislation once it is enacted. Please contact your KOS Advisor if you need more information in the meantime.
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