- Our Team
December 23, 2015
Taxpayers are receiving a bundle of early Christmas gifts as Congress has avoided a shutdown by passing a major $680 billion tax bill that will extend and also make permanent several tax breaks. The following are the major tax provisions that have been made permanent, providing taxpayers with relief and a great level of certainty now and in the future:
Research and Development Credit (R&D)
Section 179 Depreciation
Built-in Gains Tax Period for S-Corporations
Child Tax Credit (CTC)
American Opportunity Credit (AOTC)
(Just a reminder that the AOTC cannot be claimed by taxpayer who is claimed as a dependent on another person’s tax return.)
Earned Income Tax Credit (EITC)
Educator Expenses Above-the-line Deduction
(Beginning in 2016, the $250 will be indexed for inflation and include professional development expenses.)
Itemized Deduction of State and Local General Sales Tax
Tax-free Distributions from Individual Retirement Plans for Charitable Purposes
The following are non-permanent extensions of tax provisions as a result of the new tax bill:
Just a reminder that bonus depreciation is not allowed for used property.
Work Opportunity Credit
Debt Forgiveness from Personal Residence
The itemized deduction of mortgage interest premiums is extended through 2016.
The large majority of energy incentive credits for individuals and businesses have been extended for two years.
As for the Affordable Care Act/Obamacare, the medical device tax and the Cadillac tax is delayed for two years.
As you can see, virtually all of the major tax deductions and credits have extended, some permanent and others temporarily. In addition, many of these deductions and credits have been modified in ways that provide more tax relief to individuals and businesses.
Be prepared to take advantage of the tax breaks now and in the future. Have questions or need assistance on the application and eligibility of these tax breaks as it pertains to you? We are here to assist you with our expertise and high value services. Contact us at 216.524.8900 or our form to discuss your individual situation.
December 30, 2019
Does it affect your business? The Tax Cuts and Jobs Act (TCJA) introduced a variety of tax benefits for businesses. Among other things, it slashed corporate income tax rates, temporarily reduced individual rates and established a new 20% deduction for certain pass-through income. At the same time, the act placed limits on several tax breaks, […]
December 20, 2019
Avoid these common mistakes For 2019, the lifetime gift and estate tax exemption has reached a whopping $11.40 million ($22.80 million for married couples). As a result, few people will be subject to federal gift taxes. If your wealth is well within the exemption amount, does that mean there’s no need to file gift tax […]