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CLIENT ALERT: Tax Extender Bill Passes

Tina C. Schaeffer

December 31, 2019

On Friday December 20th, President Trump signed into legislation The Taxpayer Certainty and Disaster Tax Relief Act of 2019 that included a significant tax package. The Act extended over 30 individual and business tax provisions that expired or were set to expire at the end of the year. All provisions were generally extended until December 31, 2020.

The Act retroactively enacted expired provisions on or after December 31, 2017 including:

  • Treatment of mortgage insurance premiums as qualified residence interest
  • Exclusion from gross income of discharge of qualified principal residence indebtedness
  • Deduction of qualified tuition and related expenses
  • Energy efficient homes credit
  • Energy efficient commercial buildings deductions
  • Repeal of increase in unrelated business taxable income for certain fringe benefits
  • for tax-exempt entities

The Act also extended provisions set to expire on or after December 31, 2019 including:

  • Work opportunity credit
  • Look-thru rule for related controlled foreign corporations
  • Reduction in medical expense deduction floor to 7.5% of adjusted gross income

The Act notably did not include any technical corrections needed for the Tax Cuts and Jobs Act. Since some of the provisions were enacted retroactively, the filing of an amended return may need to be evaluated.

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