Congress finally passed an extenders package that includes some key tax provisions that go beyond 2015. While there are numerous provisions, the ones we are frequently asked about include:
- Section 179 deduction for up to $500,000 of qualifying business property is made permanent and the amount will be indexed for inflation in future years.
- Bonus depreciation is extended through 2019 – 50% for 2015, 2016 and 2017, 40% for 2018, and 30% for 2019. And, starting in 2016, improvements to an interior portion of a nonresidential building made after the building was placed in service will also qualify.
- For S corporations, the period for avoiding the built-in gains tax is “permanently” made 5 years.
What will we do for drama between Thanksgiving and New Year’s next year?
Below are some articles with more information on the Act’s provisions: