Tax "Extender" Legislation

Congress has passed, and the President has signed, a bill that extends many tax provisions that expired on December 31, 2014.  The extensions are retroactive to January 1, 2015.  Some of the provisions are made permanent; others are extended until December 31, 2016.  The following list contains the provisions that are most commonly used by our clients:


Individual Provisions

NEW Expiration Date

American Opportunity tax credit for higher education expenses

Made permanent

Tuition Deduction

December 31, 2016

Mortgage Insurance premium deduction

December 31, 2016

$250 Teacher Supplies deduction, now includes professional development expenses

Made Permanent

Sales Tax deduction, especially important for WA residents!

Made Permanent

IRA transfer up to $100,000 to charity in lieu of required minimum distribution

Made Permanent





Business Provisions

NEW Expiration Date

Bonus Depreciation is extended at 50% through 2017, then reduced to 40% in
2018 and 30% in 2019

December 31, 2019

Section 179 Expense is set at $500,000 and indexed for inflation

Made Permanent

If you have any questions about one of these items, or about one of the provisions that is not included here, please call one of our CPAs!