The new Protecting Americans from Tax Hikes (PATH) Act of 2015 permanently preserves several key tax breaks, with certain modifications, as well as extending numerous others.
Alert: Most changes are retroactive to Jan. 1, 2015, or the tax year beginning in 2015. Here are 20 top provisions in the new law.
- : The PATH ACT permanently restores the maximum $500,000 deduction for qualified business property, with a $2 million deduction phaseout threshold, and provides indexing for 2016 and beyond.
- Bonus depreciation: A 50% bonus is retained for 2015 through 2017. Then it dips to 40% in 2018 and 30% in 2019 before expiring.
- Cost recovery period: A business can use a fast 15-year straight-line cost recovery for qualified leasehold, restaurant and retail improvements instead of the usual 39-year period. This tax break is now permanent.
- American Opportunity Tax Credit: The PATH Act makes pe...(register to read more)