Protecting Americans From Tax Hikes Act of 2015 (PATH)
This bill was signed by President Obama on December 18, 2015, and made permanent various tax provisions. A sample of items made permanent by this act:
- The American Opportunity Tax Credit (education expenses)
- The $250 “above-the-line” deduction for teachers for expenses paid for books, supplies and other items used by the educator in the classroom
- Tax-free distributions from individual retirement plans for charitable purposes
- Section 179 depreciation expensing limitation of $500,000
There were various other provisions covered by this act. For more information see the Tax Extenders Summary.
Mileage Rates for 2016
Beginning on Jan. 1, 2016, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:
- 54 cents per mile for business miles driven, down from 57.5 cents for 2015
- 19 cents per mile driven for medical or moving purposes, down from 23 cents for 2015
- 14 cents per mile driven in service of charitable organizations
For more information, see IR-2015-137.
IRS Raises Tangible Property Expensing Threshold to $2,500
The Internal Revenue Service today simplified the paperwork and recordkeeping requirements for small businesses by raising from $500 to $2,500 the safe harbor threshold for deducting certain capital items. For more information, see IR-2015-133.
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Geenen & Kolean