Santa got a jump start on his deliveries last week, leaving a number of attractions beneath the tree.
Savers and risk-averse investors were delighted by the long-awaited upward tick in interest rates, however small it may be.
Congress wrapped several tax provisions neatly in a package, with a pretty bow atop, by passing new legislation granting several tax ‘extenders’ permanent status. These include:
- a state and local sales tax deduction in lieu of a state and local income tax deduction.
- an educator expense credit, above the line, up to $250 annually.
- tax-free treatment for IRA charitable transfers made by IRA owners age 70 1/2 or older, up to $100,000 a year. While the transfer is excluded from taxable income when made directly from the IRA account to a qualified charitable organization, no itemized deduction is allowed for the contribution.
- the continued availability of the American Opportunity tax credit, which provides up to $2500 annually for up to 4 years of post-secondary education. (The credit is subject to income phaseout thresholds.)
- expansion of eligible expenses taken as withdrawals from 529 accounts to also include the purchase of computer equipment and technology.
- continued favorable Section 179 expensing limits, including the $500,000 maximum deduction amount and the $2,000,000 threshold for phasing out the deductions, being retroactively reinstated for 2015 and also made a permanent provision in the tax code. Special rules allowing the expensing of deductions for computer software and certain qualified real property were also made permanent. Small business owners will be delighted with these provisions.
And just in time for holiday travel, gasoline prices continue to fall, as the price for a barrel of oil continues its descent.
Yes, last week brought plenty of cheer. Here’s wishing that you find your own special delight beneath your tree and that your holiday is filled with peace, love and wonderful family gatherings.
Image Credit: Matt McGee