Today TaxMama® wants to alert you to a tax extender bill sitting in Congress. It’s the Tax Extender and Disaster Relief Act of 2019.
Dear Family,
Great news! The extender bill that Congress is working on will buy us two years of (relative) certainty about our tax lives. The provisions in this bill will extend tax benefits that expired at the end of 12/31/17 to be available to us for 2018 AND 2019. (disclosure – I am one of the few tax writers who was SURE they would include 2019 – despite everyone else being convinced that they would only cover 2018.)
I could give you a link to the entire law, but here’s a 5 page
summary, instead.
https://www.finance.senate.gov/imo/media/doc/Tax%20Extender%20and%20Disaster%20Relief%20Act%20of%202019%20Summary.pdf
The personal highlights:
- Exclusion from income of cancellation of debt on principal residences (acquisition debt) for agreements entered into before 01/01/2020
- Mortgage insurance premiums (PMI) are deductible for 2018 and 2019
- Tuition and Fee expenses are deductible for 2018 and 2019
- 7.5% reduction in medical expenses stays until 12/31/2019
There are several other provisions that affect various businesses and enterprises, like mining, the film industry, racehorses… Read the summary to see if they affect you.
Remember, this isn’t law yet. But it probably will be. So if you need these tax breaks, put your 2018 tax return on extension if this doesn’t quite pass by before April 15th.
And remember, you can find answers to all kinds of questions about taxes and business issues, and EA Education, free. Where? Where else? At https://iTaxMama.com/AskQuestion
Note to those who bought the Trump Tax Cut book. Thank you. To show my appreciation, I have some bonus resources for you. Drop by https://www.trumptaxplanbook.com/ to pick them up.
