2015-2016 extenders and new tax laws (12-17-15)

Congress is expected to pass a tax bill this week that contains a host of extensions and changes to expiring provisions. Here is a list of the key provisions.

Made permanent:

  • Enhanced Child Tax Credit
  • Enhanced American Opportunity Tax Credit
  • Enhanced Earned Income Tax Credit
  • Above-the-line educator deduction
  • Sales tax deduction
  • Enhanced mass transit and parking pass benefits
  • IRA-to-charity — California automatically conforms
  • R&D credit
  • IRC §179 — enhanced
  • Enhanced exclusion of gain on sale of small business stock
  • Built-in gains holding period

Extended through 2016:

  • Qualified tuition deduction
  • Nonbusiness Energy Property Credit
  • COD principal residence exclusion
  • Mortgage insurance premium deductible as interest

Extended through 2019:

  • Bonus depreciation — phases out
  • First year bonus depreciation on automobiles — enhanced
  • Work Opportunity Tax Credi