Saturday, July 4, 2020

Join our email blast

Accounting

Have you heard about the Disaster Relief Act?

2/5/2020

ALICIA SHAUL
CPA MBA

On Dec. 20, 2019, the President signed the Taxpayer Certainty and Disaster Tax Relief Act of 2019. Inside this law, Congress retroactively reinstated several tax deductions that lapsed on Dec. 31, 2017. This means that you can take them on the 2019 federal return and amend your 2018 tax return to claim last year’s deductions:

• The 10 percent of AGI hurdle has been removed for disaster casualty loss deductions
• Debt cancellation on a foreclosure of a personal residence is not taxable income up to $2 million
• Mortgage PMI insurance premiums are tax deductible again on the federal return
• The medical expenses hurdle drops from 10 percent back down to 7.5 percent
• The Work Opportunity Tax Credit is reinstated
• Energy efficiency improvement $500 lifetime cumulative credit is reinstated (windows, doors, water heater, furnace, etc.)
• $4,000 college tuition deduction is reinstated. ♦

HIV

Post a Comment

Your email address will not be published. Required fields are marked *

*

HIVJob boardSummer Stir