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Book sessionCongress Reinstates Expired Tax Provisions -- Some Back To 2018
Congress let many tax provisions expire on December 31, 2017, making them dead for your already- filed 2018 tax returns.
In what has become much too common practice, Congress resurrected the dead provisions retroactively to January 1, 2018. That’s good news. The bad news is that we have to amend your tax returns to make this work for you.
And you can relax when filing your 2019 and 2020 tax returns because lawmakers extended the “extender” tax laws for both years. Thus, no worries until 2021—and even longer for a few extenders that received special treatment.
Back from the Dead
The big five tax breaks that most likely impact your Form 1040 are as follows:
Exclusion from income for cancellation of acquisition debt on your principal residence (up to $2 million)Deduction for mortgage insurance premiums as residence interest7.5 percent floor to deduct medical expenses (instead of 10 percent)Above-the-line tuition and fees deductionNonbusiness energy property credit for energy-efficient improvements to your residence
Congress extended these five tax breaks retroactively to January 1, 2018. They now expire on December 31, 2020, so you’re good for both 2019 and 2020.
Other Provisions Revived
Congress also extended the following tax breaks retroactively to January 1, 2018, and they now expire on December 31, 2020 (unless otherwise noted):
Black lung disability trust fund taxIndian employment creditRailroad track maintenance credit (December 31, 2022)Mine rescue team training creditCertain racehorses as three-year depreciable propertySeven-year recovery period for motorsports entertainment complexesAccelerated depreciation for business property on Indian reservationsExpensing rules for certain film, television, and theater productionsEmpowerment zone tax incentivesAmerican Samoa economic development creditBiodiesel and renewable diesel credit (December 31, 2022)Second-generation biofuel producer creditQualified fuel-cell motor vehiclesAlternative fuel-refueling property creditTwo-wheeled plug-in electric vehicle credit (December 31, 2021)Credit for electricity produced from specific renewable resourcesProduction credit for Indian coal facilitiesEnergy-efficient homes creditSpecial depreciation allowance for second-generation biofuel plant propertyEnergy-efficient commercial buildings deduction
Temporary Provisions Extended
Congress originally scheduled these provisions to end in 2019 and now extended them through 2020:
New markets tax creditPaid family and medical leave creditWork opportunity creditBeer, wine, and distilled spirits reductions in certain excise taxesLook-through rule for certain controlled foreign corporationsHealth insurance coverage credit
If you have questions about the extenders, please call me on my direct line at 888-275-6383.