Guidance to help reduce your taxes and improve your finances

3040 78th Ave SE #854, Mercer Island, WA 98040-0854

(805) 660-3658
Mon - Thurs ( 1:00pm - 6:00pm ) / Other hours by appointment

GREAT NEWS! – Today President Obama signed into law the Protecting Americans from Tax Hikes (PATH) Act of 2015! The PATH Act of 2015 is the result of cooperation by both chambers of Congress and renews/makes permanent some important tax incentives for individuals and businesses.

Each year, my business taxpayers sit on pins and needles as they wait to find out – at the end of the year or early the following year – whether the money they’ve spent purchasing new equipment all year will be deductible in full or whether they’ll have to take tiny bites over seven or more years. Well, the Section 179 expense tax provision has been enhanced — as well as permanently extended! We can actually — uh — plan!!

Now, come down off the ceiling and read this quick summary of the PATH Act of 2015.

The following tax incentives will be made permanent:
• Enhanced Child Tax Credit
• Enhanced American Opportunity Tax Credit
• Enhanced Earned Income Tax Credit
• Above-the-line educator deduction
• Sales tax (as an alternative to state income tax) deduction
• Enhanced mass transit and parking pass benefits
• IRA donation to charity (California automatically conforms)
• Research & Development credit
• IRC §179 — $500,000 write-off on up to $2,000,000 of equipment; up from $25,000 on $200,000
• Enhanced exclusion of gain on sale of small business stock
• Built-in gains holding period
• Write off of retail/restaurant improvements over 15 years

The following will be extended through 2019:
• Bonus depreciation (this will phase out gradually)
• Enhanced first year bonus depreciation on automobiles
• Work Opportunity Tax Credit — tax incentive to hire the disabled, welfare recipients and other economically challenged individuals.

The following will be extended, but only through 2016:
• Qualified tuition deduction
• Nonbusiness Energy Property Credit
• Exclusion from income of cancelled mortgage indebtedness
• Mortgage insurance premium deductible as interest

I’ll share more details with you when we visit, but I know some of you are so excited you just can’t wait. Okay, so you’re not all tax geeks like yours truly; I’ll forgive you. But should you have questions in the interim, please give me a call.