Employers may provide ways to make it easier for employees to commute back and forth from work. Now the Protecting Americans from Tax Hikes Act of 2015 (PATH Act) has equalized the three main tax-free benefits for transportation, beginning in 2016. This relates to mass transit passes, commuter highway vehicle expenses and qualified parking fees.
Like Arnold Schwarzenegger’s character in The Terminator, the research credit is back. This valuable tax break, which had officially expired and been restored more than a dozen times in the past, was extended again by the Protecting Americans from Tax Hikes (PATH) Act, retroactive to the beginning of 2015. What’s more, the credit has been made permanent, with certain modifications, by the new PATH Act.
There are many ways you can provide benefits to your favorite charity other than simply donating cash (although that is certainly appreciated, too). For instance, you can donate property such as a car or other vehicle that may be used to further the charity’s tax-exempt function. Of course, you are entitled to a charitable deduction for the gift.
One of the biggest tax breaks in the tax code is the home sale exclusion. If you qualify, you can exclude the tax on the first $250,000 of gain from the sale of your principal residence, doubled to $500,000 if you file a joint return. But the exclusion is not available if you do not meet certain requirements.