Before Christmas of 2015 Congress passed and the President signed the Protecting Americans from Tax Hikes Act of 2015 (PATH)
This bill not only extended many tax laws that had actually expired at the end of 2014, some of the items were made permanent.
The biggest business clause in the bill is to make permanent the maximum that small business can expense in capital equipment. The amount is back to $500,000. This amount would have fallen to $25,000 had the bill not passed.
For individuals there were many smaller provisions, many which were made permanent.
The Teacher deduction credit was renewed and actually has an inflation adjustment, in case inflation should ever become excessive.
For taxpayers itemizing deductions they can again choose they greater on State & Local Income Tax – or sales tax – whichever is greater.
Individuals may make direct transfers to charity.
The American Opportunity Credit was renewed
Some items were renewed – but only thru the end tax year 2016.
These include the mortgage insurance deduction, the residential mortgage credit, and the tuition deduction.
All together there are over 50 clauses in the bill. For details of how this bill affects you, please discuss the provisions with your tax preparer.