Tax Provisions Extended for 2016

- Wednesday, December 23rd, 2015

The Protecting Americans from Tax Hikes (PATH) Act of 2016 was passed by the House and the Senate and signed into law by President Obama on December 18, 2015.

While there were many provisions that were extended or made permanent, following are some pertinent highlights that you may want to consider taking advantage of before December 31, 2015:

  • Incentives for Charitable Giving – The provision permanently extends the ability of individuals at least 70 ½ years of age to exclude from gross income qualified charitable distributions from Individual Retirement Accounts (IRAs).  The exclusion may not exceed $100,000 per taxpayer in any tax year.


  • Section 179 Expense Deduction – The provision permanently extends the small business expensing limitation to $500,000 for costs of qualifying section 179 assets placed in service during the tax year.


  • Bonus Depreciation – The provision extends bonus depreciation for property acquired and placed in service during 2015 through 2019.  The bonus 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.


  • Deduction for Certain Expenses of Elementary and Secondary School Teachers – The provision permanently extends the above-the-line deduction for eligible expenses up to $250 of elementary and secondary school teachers.


Please call if you have any questions!