Just a week before Christmas Congress passed a tax gift to many Americans. Surprisingly many temporary tax breaks, the so called extenders, were made permanent. Made permanent include, educator expenses, deductions for sales tax, and most interestingly not only was the American Opportunity tax credit was made permanent, the Hope education credit was increased and indexed for inflation.
Very good news for small business owners. Section 179 expenses were made permanent. The provision permanently extends the small business expensing limitation and phase-out amounts in effect from 2010 to 2014 ($500,000 and $2 million, respectively). These amounts currently are $25,000 and $200,000, respectively. The special rules that allow expensing for computer software and qualified real property (qualified leasehold improvement property, qualified restaurant property, and qualified retail improvement
property) also are permanently extended.
Professional Education Services has compiled a summary of the law. We have posted a link below.
Click here to read the pdf file Summary of the Protecting Americans from Tax Hike Act.
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