2015 PATH ACT – THE EXTENDERS

 

These tax breaks have repeatedly been temporarily extended for short periods of time (e.g., one or two years), which is why they are referred to as “extenders.”  The renewal provisions of the Protecting Americans from Tax Hikes Act of 2015 include:

  • The Sales Tax deduction for residents of Florida – made permanent
  • Tax Credits made permanent are: (1) the American Opportunity Tax Credit, which provides up to $2,500 in tax credits for post-secondary education, (2) eased rules for qualifying for the refundable child credit, and (3) various earned income tax credit (EITC) changes;
  • The provision that permits tax-free distributions to charity from an individual retirement account (IRA) of up to $100,000 per taxpayer per tax year, by taxpayers age 70 1/2 or older – made permanent;
  • The $250 above-the-line deduction for teachers and other school professionals for expenses paid or incurred for books, certain supplies, equipment, and supplementary material used by the educator in the classroom - made permanent;
  • The exclusion of up to $2 million ($1 million if married filing separately) of discharged principal residence indebtedness from gross income - extended through 2016;
  • The deduction for mortgage insurance premiums deductible as qualified residence interest - extended through 2016;
  • The above-the-line deduction for qualified tuition and related expenses -  extended through 2016; and
  • The increased contribution limits and carryforward period for contributions of appreciated real property (including partial interests in real property) for conservation purposes is made permanent. The new law also extends the enhanced deduction for certain farmers and ranchers.