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Congress Approves $620 Billion in Tax Breaks!

On Friday morning, Congress gave final approval to a sweeping, year-end fiscal package that includes $620 billion in tax breaks for businesses and low-income workers.
The bill now goes to the White House, where President Obama has said he will sign it.  These tax breaks include:

  • Tax relief for families and individuals
  • Incentives for charitable giving
  • Incentives for growth, jobs, investment and innovation
  • Incentives for real estate investment
  • Permanent $500,000 Section 179 expensing limit
  • Bonus depreciation extended through 2019
Examples include:
-Enhanced child tax credit made permanent.
-Enhanced American opportunity tax credit made permanent.
-Extension and modification of special rule for contributions of capital gain real property made for conservation purposes.
-Extension of tax-free distributions from individual retirement plans for charitable purposes.
-Extension and modification of research credit.
-Extension and modification of employer wage credit for employees who are active duty members of the uniformed services.
-Extension of minimum low-income housing tax credit rate for non-Federally subsidized buildings.

Medicare Update

For most subscribers, the monthly Medicare Part B premium will remain at $104.90 through 2016. Some subscribers will see an increase to $121.80.  These include individuals who first enroll in 2016 and those who do not have premiums deducted from monthly Social Security benefits.
Higher income seniors with adjusted gross income for 2014 exceeding certain thresholds will also pay more for Part B coverage in 2016. In addition, they will also owe a surcharge on Part D premiums for coverage of prescription drug costs.
Click Here for a table with specific income and premium details.

Mileage Update
New standard mileage rate is  $.54 for 2016.  This is  down from $.575 in 2015.
Please call or email your Hysjulien and Associates tax and accounting professional to see how these and many other items on the new Tax Extender bill may impact your particular tax situation.

 

December 20th, 2015

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