Section 179 Expensing & Bonus Depreciation set for 2015

Recently Congress passed the 2015 Extender Bill, Protecting Americans from Tax Hikes Act (PATH).  Some provisions were made permanent, others have been extended and others have been modified.  Below are a few of the highlighted sections of the PATH Act:

• Section 179 expensing made permanent at $500,000 with a $2 million purchasing limit.  Heating & air units put in place after the 2015 tax year are eligible property.  Certain real property as eligible made permanent.
• Qualified leasehold improvements, qualified retail improvements and qualified restaurant property made permanent 15 year property.
• Bonus depreciation extended to Dec 31, 2019, decreasing each year until 2019.  The limit is 50% for years 2015 – 2017.
• Reduced built in gains recognition period of 5 years for S corporations made permanent.
• IRA transfers to a charitable organization in lieu of RMDs made permanent.
• K-12 teacher classroom expenses deduction made permanent.
• Enhanced child tax credits made permanent.

For more information, visit http://www.gop.gov/bill/house-amendment-2-to-the-senate-amendment-to-h-r-2029-protecting-americans-from-tax-hikes-path-act-of-2015/. Contact one of our tax professionals at 1-866-287-9604 with any questions.