A number of key provisions are scheduled to expire at the end of 2015, including:
- Increased Internal Revenue Code (IRC) Section 179 expense limits and "bonus" depreciation provisions end.
- The increased 100% exclusion of capital gain from the sale or exchange of qualified small business stock (provided certain requirements, including a five-year holding period, are met) will not apply to qualified small business stock issued and acquired after 2015.
- The above-the-line deductions for qualified higher education expenses, and for up to $250 of out-of-pocket classroom expenses paid by education professionals, will not be available after the 2015 tax year.
- If you itemize deductions, 2015 will be the last year you'll be able to deduct state and local sales tax in lieu of state and local income tax.
When it comes to year-end tax planning, there's always a lot to think about. A financial professional can help you evaluate your situation, keep you apprised of any legislative changes, and determine if any year-end moves make sense for you.