Oops, they did it again! Congress extends the extenders
March 1, 2018 | Authored by Dopkins Tax Advisory Group
On February 9, 2018 as part of the continuing resolution to fund the government through March 23rd, Congress extended some tax deductions and credits through the end of 2017. Why you ask? Taxpayers have already relied on and expected that these deductions and credits would be available for 2017. However, in December, these items were sidelined with the passage of the New Tax and Jobs Act. Most Taxpayers were unaware that these had expired last year.
So thanks to the D.C. Theater, here are a few of the major provisions back for an encore performance to hit your taxes one last time.
For Individuals:
- Above-the-line deduction for qualified tuition and related expenses
- Mortgage insurance premiums treated as qualified residence interest
- Credit for nonbusiness energy property (energy home improvements)
- Credit for new qualified fuel cell motor vehicles (such as electric cars)
For Businesses:
- Classification of certain race horses as 3-year property
- Treatment of Timber gains for C Corporations
- Empowerment zone tax credits
- Credit for energy-efficient new homes
- Biodiesel and renewable diesel incentives
- Energy efficient commercial buildings deduction
- Credit for residential energy efficient property (extended at 26% to 2020 and 22% in 2021)
- Investment Tax Credit for solar, fuel cell, wind and thermal energy (construction beginning before 2022)
With the exception of a few minor ones, these all have an expiration date of December 31, 2017. Due to the tax reform and simplification contained in the Tax Cuts and Jobs Act passed late last year, we do not foresee these provisions being extended again.
About the Author
Dopkins Tax Advisory Group
Our tax professionals include specialists who are proactive, strategic thinkers who work to maximize your cash flow. In addition to cash flow considerations, we also believe that tax planning is most effective when it is integrated with, and fully supports, your business plan and personal goals. Our approach to tax planning will help you better understand the tax implications of any proposed course of action, and together we can make the right decisions for your business. Contact us via email link below for more information. for more information contact your Dopkins Client Service Coordinator or Gregory Urban at gurban@dopkins.com