A Publication of WTVP

How does the PATH Act affect your business or personal taxes?

As 2015 was coming to a close, those of us in the tax community found ourselves in an all-too-familiar situation: waiting with bated breath to discover the fate of more than 50 tax provisions that had expired at the end of 2014. Some were expecting a one-year extension of the rules; however, the Protecting Americans from Tax Hikes Act of 2015 (PATH Act) passed by the House and Senate in December provides for much more than just a one-year extension. This bill gives individuals and businesses some long-awaited assurances by making several key tax provisions permanent, as well as extending other important provisions over multiple years, many of which are retroactively applied to the beginning of 2015. The bill covers a plethora of topics, from how quickly businesses can write off their assets all the way to exclusions for qualified bicycle commuting reimbursements.

Clearly, there are too many provisions to cover in a single article, but some of the highlights of the bill most likely to have the biggest impact include:

Key Tax Provisions For Individuals

Key Tax Provisions For Businesses

Miscellaneous Tax Measures
Outside the more than 50 tax provisions that were set to expire, the PATH Act provides for over 80 miscellaneous tax measures, including:

The PATH Act of 2015 is seen as a big step forward for tax reform in the United States. By making many of the provisions permanent, it eliminates uncertainty for business owners and allows for more well-rounded business decisions to be made. The Act also gives individuals a clearer picture to plan for their personal financial decisions. The items highlighted above hopefully shed some light on the key provisions that will be most beneficial for both business and personal tax strategies. iBi

Landon Roemersberger, CPA is a senior accountant at Heinold Banwart, Ltd. He can be reached at (309) 694-4251 or [email protected].