Consolidated Appropriations Act Makes Many "Tax Extenders" Permanent

By Derek C. Hamilton, Elser Financial Planning Inc.

For years, Congress has been in the habit of extending a number of tax benefits for a year or few at a time, leaving tax professionals and their clients to wait and wonder – sometimes until the tax year is over – "will they or won’t they?” continue a particular tax benefit. With the Consolidated Appropriations Act of 2015, many of the heretofore year-to-year “tax extenders” – like qualified charitable distributions (QCDs) for IRA contributions, the American Opportunity Tax Credit for college costs and the itemized deduction for state and local taxes – have become permanent. Others, unfortunately – like 50% bonus depreciation and the work opportunity tax credit – are extended for only a few years. For more, see this article.

This post was written by Derek C. Hamilton, Elser Financial Planning Inc. If you would like to submit content or write an article for the Tax Section, please email Rachel Beachy at rbeachy@indybar.org.