It appears that Congress will pass and the President will sign the “Protecting Americans from Tax Hikes” Act.
For businesses, this will make permanent the $500,000 section 179 deduction and will extend bonus depreciation through 2019 as well as allow for a 15 year depreciation life for certain leasehold improvements and restaurant property.
For individuals, the Bill extends permanently the ability to make to $100,000 of charitable contributions directly from an IRA. Other tax benefits such as the $250 educator expense deduction and the American Opportunity Tax Credit for college tuition were also made permanent.
Good news for taxpayers, it is a shame that Congress waited until the last two weeks of December to finally address this.
On another note, the IRS has issued the standard mileage rates for 2016.
2016 Standard Mileage Rates Released (IR-2015-137; Notice 2016-1)
The IRS has released the 2016 optional standard mileage rates that employees, self-employed individuals, and other taxpayers can use to compute deductible costs of operating automobiles (including vans, pickups and panel trucks) for business, medical, moving and charitable purposes.
The 2016 standard mileage rate has decreased to 54 cents per mile for business uses and 19 cents per mile for medical and moving uses. It remains at 14 cents per mile for charitable uses. For purposes of computing the allowance under an FAVR plan, the standard automobile cost may not exceed $28,000 ($31,000 for trucks and vans).
The updated rates are effective for deductible transportation expenses paid or incurred on or after January 1, 2016, and for mileage allowances or reimbursements paid to, or transportation expenses paid or incurred by, an employee or a charitable volunteer on or after January 1, 2016.