December 21, 2015
The Protecting Americans from Tax Hikes Act of 2015, signed into law by the President on December 18, 2015, extends a number of important tax breaks, and makes many of them permanent. To see the Wolters Kluwer tax briefing, click here.
The law makes the following deductions, credits and other tax provisions permanent:
The Research & Development credit
Sec. 179 expensing limitation of $500,000 and $2 million phase-out amounts retroactively extended and made permanent. Also includes qualified real property. After 12/31/15, HVAC units will now be eligible for Sec. 179 expensing
The exclusion of 100% of gain on certain small business stock
Reduction in S corporation recognition period for built-in gains tax to 5 years
The charitable deduction for contributions of food inventory
The tax treatment of certain payments to controlling exempt organizations
Basis adjustment to stock of S corporations making charitable contributions of property
The employer wage credit for employees who are active duty members of the uniformed services
15-year straight-line cost recovery for qualified leasehold improvements, qualified restaurant buildings and improvements, and qualified retail improvements
The enhanced Child Tax Credit - $1,000 tax credit for each qualifying child under age 17
The enhanced American Opportunity Tax Credit - $2,500 tax credit for four years of post-secondary education
The enhanced Earned Income Tax Credit
The deduction for certain expenses of elementary and secondary school teachers – above the line deduction for up to $250 per year
Parity for exclusion from income for employer-provided mass transit and parking benefits
The deduction of state and local general sales taxes
The special rule for contributions of capital gain real property made for conservation purposes
Tax-free distributions from IRA plans for charitable purposes – up to $100,000 per year
Summary of Changes and Reminders for 2016
Bonus depreciation, at 50% for 2015-2017 and phased down to 40% in 2018 and 30% in 2019
The Work Opportunity Tax Credit (WOTC), modified and enhanced for employers who hire long-term unemployed individuals (unemployed for 27 weeks or more) to 40% of the first $6,000 of wages
Most energy property credits (for example: Energy efficient property, Alternative Fuels, Renewable Electricity Production) extended through 2016
“It all started with church…” Those are the words Nalini uses to explain how her career in accounting first began, although the industry runs in her veins as her older sisters are also in the field. Nalini, a Modesto native, began taking bookkeeping classes while she was a student at Modesto Junior College. During her time there, she was asked to help out a local church with their bookkeeping and she fell in love with putting numbers together and helping get positive results for her client. From MJC, her desires and dreams in the field grew as she transferred to Northwest Nazarene University and fell in love with the school of business, eventually graduating with a Bachelors of Science in Accounting and continuing on to receive her Master of Science s in Accounting from Walden University.
When Nalini is not crunching numbers, you can find her leading fellowship at Big Valley Grace Community Church, watching movies (like the Lord of the Rings trilogy) or reading up on a historical figure such as William Wilberforce (English politician, philanthropist, and a leader of the movement to abolish the slave trade).
One of her favorite quotes by Mr. Wilberforce states, “We have different forms assigned to us in the school of life, different gifts imparted. All is not attractive that is good. Iron is useful, though it does not sparkle like the diamond. Gold has not the fragrance of a flower. So different persons have various modes of excellence, and we must have an eye to all.” Nalini is passionate about seeing what is special in all people and looks forward to finding a way to share her passion in our community through encouraging and building up young women.