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Post Date:  12/23/2019
Last Updated:  12/23/2019

Summary
Cross References
- H.R. 1865

Signed into law on December 20, 2019, the Consolidated Appropriations Act of 2020 averts a government shutdown that would have begun on December 21, 2019. The appropriations act funds the federal government through September 30, 2020.

Included in the appropriations bill are a number of tax law changes, including extenders, retirement plan funding and distribution reform, and disaster relief.

Extension of Expiring Provisions
Tax provisions listed on page 1-7 of TheTaxBook 1040 Edition/Deluxe Edition that had previously expired are now extended as follows:
- Cancellation of qualified principal residence indebtedness exclusion from gross income has been extended through the end of 2020. [IRC §108(a)]
- Mortgage insurance premiums deduction has been extended through the end of 2020. [IRC §163(h)]
- Medical expense AGI limitation threshold reduced from 10% to 7.5% of AGI for all taxpayers for regular tax and for AMT purposes has been extended through the end of 2020. [IRC §213(f)]
- Tuition and fees deduction has been extended through the end of 2020. [IRC §222(e)]
- Indian employment credit is extended through the end of 2020. [IRC §45A]
- Race horse two years old or younger treated as 3-year property instead of 7-year property has been extended through the end of 2020. [IRC §168(e)(3)]
- Indian reservation property accelerated depreciation recovery periods has been extended through the end of 2020. [IRC §168(j)]
- Empowerment zone tax incentives has been extended through the end of 2020. [IRC §1391(d)]
- Biodiesel and renewable diesel fuels credit has been extended through the end of 2022. [IRC §40A]
- Second generation biofuel producer credit has been extended through the end of 2020. [IRC §40(b)]
- Nonbusiness energy property credit has been extended through the end of 2020. [IRC §25C]
- Alternative motor vehicle credit for qualified fuel cell motor vehicles has been extended through the end of 2020. [IRC §30B(k)]
- Alternative fuel vehicle refueling property credit has been extended through the end of 2020. [IRC §30C]

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