KPMG report: Analysis of year-end tax legislation

Analysis of year-end tax legislation in United States

President Obama on December 18, 2015, signed the “Consolidated Appropriations Act, 2016,” which includes tax-related provisions in Division P and Division Q (the “Protecting Americans from Tax Hikes Act of 2015”—referred to as the “PATH Act”).

Related content

The new law contains significant policy changes. For example:

  • It makes permanent some tax incentives that previously had expiration dates, and extends other temporary incentives for varying time periods. Some of the provisions that were extended or made permanent also were modified.  
  • It temporarily suspends the medical device excise tax and postpones the implementation of the so-called “Cadillac tax” on certain health plans.
  • It includes significant tax law changes relating to real estate investment trusts (“REITs”), the Foreign Investment in Real Property Act (“FIRPTA”) rules, loss deferral under section 267, the section 199 rules as applied to independent oil refiners, tax-exempt organizations, certain procedural matters, and other issues.  
  • It includes a temporary extension of the ban on states and localities taxing internet access.

 

Read a January 2016 report [PDF 684 KB] prepared by KPMG LLP that summarizes and includes observations about key new tax law provisions

Related documents

© 2016 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us

 

Request for proposal

 

Submit

KPMG's new digital platform

KPMG's new digital platform