Expiring Tax Provisions

Post Date: 10/5/12
Last Updated: 10/5/12

Summary

Cross References
• TheTaxBook, pages 1-6 through 1-8

Congress recessed on September 22, 2012 and is not expected to reconvene until after the November 6 elections. Congress has yet to extend any of the expiring tax provisions, many of which expired at the end of 2011. Some experts predict that a tax package will not be enacted until late in the year, with some predictions that it could be early in 2013 before we know which provisions have been extended for the 2012 tax year. A similar situation occurred on December 17, 2010 when the President signed into law a bill that extended numerous expiring provisions for the 2010 tax year.

As a reminder, TheTaxBook will include in Tab 1 all tax law changes that have been signed into law as of December 1, 2012. TheTaxBook start ship date is December 15, 2012. The new book entitled, What’s New In-Depth, written by the authors of TheTaxBook, will include all tax law changes that have been signed into law as of January 1, 2013. The start ship date for the What’s New In-Depth book is January 15, 2013. Any tax law changes signed into law after these dates will be covered in TheTaxBook Update Service, which provides updates year round on our website, TheTaxBook Web Library, and TheTaxBook CD.

A list of expiring tax provisions can be found on pages 1-6 through 1-8 of TheTaxBook 1040 Edition and Deluxe Edition. Some of the provisions that expired at the end of 2011 include:
• The Adoption Expense Credit as a refundable credit.
• AMT exemption amount increase over the tax year 2000 exemption amount.
• Charitable contributions of IRA distributions.
• Credit for increasing research activities.
• Educator expenses up to $250 deducted as an above-the-line deduction.
• Energy Efficient Home Credit.
• FUTA surtax increase from 6.0% to 6.2%.
• Leasehold improvements, restaurant property, and qualified retail space improvement property eligible for up to $250,000 Section 179 deduction.
• Leasehold improvements, restaurant property, and qualified retail space improvement property treated as 15-year property.
• Mortgage insurance premiums deductible as mortgage interest.
• New hire retention credit.
• New Markets Tax Credit.
• Nonbusiness Energy Property Credit.
• Nonrefundable personal tax credits allowed against AMT.
• Sales tax deduction instead of state income tax deduction.
• Section 179 deduction increase from $125,000 to $500,000.
• 100% Special depreciation allowance deduction.
• Transportation benefits being equal for tax-free transit passes and qualified parking.

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