Congress got busy the end of last year, creating a flurry of new laws that included tax changes. These changes may affect you, your family, your investments, and your livelihood. Here’s what you need to know.
The Protecting Americans From Tax Hikes (PATH) Act (P.L. 114-113, 12/18/2015) retroactively extended 50 or so taxpayer-favorable tax “extenders” — temporary tax provisions that are routinely extended by Congress on a one- or two-year basis, that had been expired since the end of 2014.
More than a dozen extenders became permanent including: nontaxable IRA transfers to eligible charities, enhanced child tax credit, American opportunity tax credit, earned income tax credit, above-the-line deduction for educator expenses; parity for exclusion from income for employer-provided mass transit and parking benefits; the deduction of State and local general sales taxes; the research credit; and 15-year straight-line cost recovery for qualified leasehold improvements, qualified restaurant buildings and improvements, and qualified retail improvements.
It also contained a delay in the Affordable Care Act’s 2.3% excise tax on medical devices and provisions on Real Estate Investment Trusts (REITs), IRS administration, the Tax Court and numerous other rules.
Contact us to learn what steps you should implement to take advantage of favorable developments and to minimize the impact of those that are unfavorable. To find out more about how these changes could affect your taxes, reach out to Strauss Troy Attorney Ken Kinder or any of our tax planning attorneys for help.