On December 20, President Donald Trump signed into law the Taxpayer Certainty and Disaster Tax Relief Act of 2019 (the Act). The Act extends certain expired and soon to expire tax provisions through the 2020 tax year, including:

  • Discharge of qualified principal residence indebtedness from gross income
  • Mortgage insurance premiums treated as qualified residence interest.
  • 7.5 percent floor to deduct medical expenses (instead of 10 percent)
  • New market tax credit
  • Deduction of qualified tuition and related expenses
  • Work opportunity credit
  • Paid family and medical leave credit
  • Health insurance coverage credit
  • Look-through rule or certain controlled foreign corporations
  • Beer, wine, and distilled spirits reductions in certain excise taxes

The Act also retrocativly extended tax provisions that had expired on December 31, 2017, to January 1, 2018, and they now expire on December 31, 2020 (unless otherwise noted), including:

  • Energy-efficient homes credit
  • Black lung disability trust fund tax
  • Indian employment credit
  • Empowerment zone tax incentives
  • Biodiesel and renewable diesel credit (December 31, 2022)
  • Disaster tax relief tax credits.
  • Credit for electricity produced from certain renewable resources.
  • Expensing rules for certain film, television, and theater productions.
  • Other miscellaneous credits.

For some taxpayers, these incentives will reduce 2019 tax liabilities, and for provisions that were resurrected retroactively to January 1, 2018, some taxpayers may be able to make use of these deductions by amending prior returns.

If you have any questions on these tax provisions, please contact your ALL tax advisor or call us at 617-738-5200.

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