2016 Year End Highlights
- Congress has passed, and the President signed, the Protecting Americans From Tax Hikes Act of 2015:
- Section 179 equipment expensing of $500,000 has been made permanent;
- Research and Development Credit has been made permanent;
- 50% bonus depreciation extended through 2019.
- AMT exemptions are increasing for 2016.
- Estate and gift tax exemption rises to $5,450,000 in 2016.
- De minimis safe harbor for taxpayers with no AFS (applicable financial statement) raised to $2,500.
- The standard mileage rate declines to $.535 per mile for 2017.
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Individual Provisions Available for 2016 and Future Years
- Deduction for expenses of elementary and secondary school teachers - $250
- Mortgage debt forgiveness
- Deduction for mortgage interest premiums
- Deduction for state and local general sales taxes
- Above the line deduction for higher education tuition expenses, up to $4,000
- Tax-free distributions from individual retirement plan for charitable purposes
- $500 credit for energy efficient improvements to existing homes (for 2015 and 2016 only)
We advise you to visit us soon to determine your 2016 tax liability and potentially prepay it before it becomes a penalty issue in April.
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If you have any questions about any of these provisions, please contact us!
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