Tax Reform Strikes Again!
Last Friday, Congress (while reaching an agreement on a government funding bill) just had to throw in some new items not included in the Tax Reform Act signed by the President last month and effective for tax year 2017!
Never mind that the IRS has already received over 18 million returns. These provisions are known as extenders because they were originally passed years ago with a one-year expiration date. When Congress realized they were useful in buying votes, they were extended (usually in December) each year hence the name.
Some of these newly-enacted provisions affect these areas:
- exclusion from gross income of discharge of qualified principal residence indebtedness
- mortgage insurance premiums treated as qualified residence interest
- above-the-line deduction for qualified tuition and related expenses
- credit for non-business energy property
- credit for residential energy property
- credit for new qualified fuel cell motor vehicles
- credit for alternative fuel vehicle refueling property
- credit for 2-wheeled plug-in electric vehicles
- energy efficiency credits extended for Multifamily & Residential Developers ($2,000 credit for rehabbed & energy efficient units)
- energy efficiency deductions extended for Commercial Buildings ($1.80 deduction per square foot for energy efficient commercial property)
A full list can be found here ( the list begins at Section 40101).