John Bullis: Congress approved old tax provisions
Our hard working, diligent Congress recently reinstated some tax law provisions that had been deleted. Originally the provisions were changed or cancelled, but now are retroactively approved as the tax law you know and love.
Five major items approved retroactively to Jan. 1, 2018 and don’t expire until Dec. 31, 2020:
Cancellation of acquisition debt on your personal resident is not taxable up to $2 million.
Mortgage Insurance Premiums are allowed as a deduction as additional mortgage interest.
Medical expenses greater than 7.5% of Adjusted Gross Income allowed, instead of 10%.
Tuition and fees deduction is allowed as an “above the line” deduction
Non-business energy property tax credit for improvements to your home (water heater, furnace, central air conditioning, some fans, etc.) but still subject to lifetime $500 maximum credit
Those items are OK now for your 2018 return. If you benefit enough, you can file an Amended return, form 1040X and get a refund.
Those above items are allowed now for your 2019 and 2020 returns.
Oh, by the way a few other less known items were also retroactively approved to Jan. 1, 2018 and these don’t expire until Dec. 31, 2020 (unless noted otherwise).
Black lung disability trust fund tax; Indian employment credit; Railroad track maintenance credit; Mine rescue team training credit; certain racehorses are three-year depreciable property; Seven year recovery period for depreciation for motorsports entertainment complexes; faster depreciation expense for business property on Indian reservations; better expensing rules for certain film, television and theater productions; tax incentives for empowerment zones; American Somoa economic development credit; Biodiesel and renewable diesel credit (through 12-31-22); Second-generation biofuel producer credit; Qualified fuel-cell motor vehicles tax credit; Alternative fuel-refueling property tax credit; two-wheeled plug-in electric vehicle credit (through 12-31-21); Credit for electricity produced from specific renewable resources; Production credit for Indian coal facilities; Energy-efficient homes construction credit; special depreciation allowance for second-generation biofuel plant property and energy-efficient commercial buildings special deduction.
I don’t know how Congress had time to study all those items. Maybe some lobbyists helped.
Did you hear “When your cat has kittens, you really find out who your friends are.”