If you liked to be one of the first people to submit your taxes, you may need to amend your 2017 tax return. For many people who already submitted their taxes, they now are needing to amend the tax returns because several expiring “extender provisions” that were expired were retroactively reinstated through December 31, 2017. This may affect your tax return so make sure you ask your Tax Professional if these apply to you and if you already submitted your return, how you can amend it.
The following list summarizes the most “notable” items as summarized by the National Association of Tax Professionals
Exclusion for discharge of indebtedness on a principal residence
The provision extends the exclusion from gross income of a discharge of qualified principal residence indebtedness through 2017. The provision also modifies the exclusion to apply to qualified principal residence indebtedness that is discharged pursuant to a binding written agreement entered into in 2017.
Premiums for mortgage insurance (PMI) deductible as mortgage interest
The provision extends the treatment of qualified mortgage insurance premiums as interest for purposes of the mortgage interest deduction through 2017. This deduction phases out ratably for taxpayers with adjusted gross income of $100,000 to $110,000.
Above-the-line deduction for qualified tuition and related expenses
The provision extends the above-the-line deduction for qualified tuition and related expenses for higher education through 2017. The deduction is capped at $4,000 for an individual whose adjusted gross income (AGI) does not exceed $65,000 ($130,000 for joint filers) or $2,000 for an individual whose AGI does not exceed $80,000 ($160,000 for joint filers).
Three-year depreciation for race horses 2-years-old or younger
The provision extends the 3-year recovery period for race horses to property placed in service during 2017.
If you have questions about the changes in the 2018 tax law or any provisions reinstated for 2017, please contact your tax professional or call our office at 407-922-0918 or email firstname.lastname@example.org and remember, you should always ask your tax professional any questions if you are unsure! They would much rather you ask now while any problems can be fixed versus in the future when the solution may be more costly and difficult.