The following significant real estate-related federal tax laws passed in 2015:
• Mortgage Debt Forgiveness: Authority extended for two years (2015 & 2016). There is still opportunity to do short sales.
• Mortgage Insurance Premium Deductibility: Provisions allowing the deductibility of mortgage insurance premiums were extended for two years ( years 2015 & 2016)
• Charitable Deduction: The expired provision that gives a charitable deduction for contributions of real property for conservation purposes is made permanent.
• Immediate Expensing of Business Equipment and Certain Real Estate: The expensing provision for equipment and certain real estate used by small- and mid-sized businesses is made permanent (section 179).
The real estate includes leasehold improvements, certain restaurant improvements, and certain retail improvements. Moreover, the $250K cap on this qualified real estate (which is half that of personal property) is being removed starting in 2016, so all business assets (real and personal) will have the same $500K limit each year, and indexed for future inflation.
• Bonus Depreciation: Extends bonus depreciation treatment for five years. Furthermore, the provision now includes a new category called "Qualified Improvement Property," which is defined as an improvement to the interior portion of an existing non-residential commercial building (except for elevators, escalators, or enlargements). Therefore, most leasehold improvements will now generally be eligible for immediate expensing for the smaller and mid-size businesses and for bonus depreciation (50 %) for the bigger companies.
If there are more taxes passed not included please contact me for further inclusion.
Sam Shueh Realtor
I've called San Francisco South Bay home for over 37 years. We love this area and all it has to offer, and I enjoy sharing what I know about homes. I documented in several books about Silicon Valley history. I have much expertise in real estate...please give me a call. SamShuehRealtor at Gmail (Four-O-Eight) 425-1601
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