Protecting Americans from Tax Hike – Legislation Passed

Protecting Americans from Tax Hike – Legislation Passed

By In Uncategorized On January 22, 2016


Year-end legislation makes permanent a number of tax extenders for individuals and businesses. Year-end tax legislation delays two excises taxes and one fee under the Affordable Care Act: the excise tax on high dollar health plans, the medical device excise tax, and the health insurance provider fee.

Some extenders made permanent: Call my office for more details.

The PATH Act makes permanent and in some cases modifies:

  • Reduced earnings threshold for additional child tax credit
  • Earned income credit modifications
  • Teachers’ classroom expense deduction
  • State and local sales tax deduction
  • Transit benefits parity
  • Tax-free distributions from IRAs for charitable purposes for individuals age 70 ½ and older
  • Enhanced Section 179 expensing
  • Research tax credit
  • Basis adjustment to stock of S corporations making charitable contributions of property
  • Employer wage credit for activated military reservists
  • 15-year straight-line cost recovery for qualified leasehold improvements, qualified restaurant buildings and improvements, and qualified retail improvements
  • Exclusion of 100 percent of gain on certain small business stock
  • Reduction in S Corp recognition period for built-in gains tax from 10 years to 5 years
  • Charitable deduction for contributions of food inventory