Individual Tax Provisions Extended by the Taxpayer Certainty and Disaster Relief Act

By Michael Gracik, Jr., CPA, Director

Individual Tax Provisions Extended by the Taxpayer Certainty and Disaster Relief Act

New Budget Bill Extends Many Expiring Tax Provisions

This past Thursday, December 19, 2019, Congress passed the Taxpayer Certainty and Disaster Relief Act of 2019 as part of the Further Consolidated Appropriations Act. President Trump signed the bill into law on Friday, December 20.

The Act contains a number of disaster relief provisions, repeals some of the tax provisions of the Affordable Care Act, and increases funding for the Internal Revenue Service.

The Disaster Act extends over 30 expired tax provisions through 2020.

Individual Tax Provisions Extended by the Act

  • The Act extends the exclusion from gross income of up to 2 million dollars of the discharge of qualified principal residence indebtedness for discharges of indebtedness before January 1, 2021
  • The Act extended through 2020 the ability of taxpayers to treat as qualified residence interest the payment of certain mortgage insurance premiums in connection with acquisition indebtedness of their principal residence
  • The 7.5 percent of adjusted gross income floor (instead of 10 percent) for the deduction of medical expenses is extended by the Act through 2020
  • The above the-line-deduction for qualified tuition and related expenses is extended through 2020 by the Act
  • The Act extended through 2020 the 10 percent credit for the purchase of non-business energy property improvements to a principal residence such as windows, door, skylights and roofs

The Act also extended a number of business incentive provisions and energy incentive provisions through 2020 such as the Empowerment Zone Tax Incentives and the Work Opportunity Tax Credit

It is notable that the Act did not include a technical correction to the Tax Cuts and Jobs Act of 2017 to provide a 15 year recovery period for qualified improvement property.

Questions on how these changes may impact your specific tax situation? Contact your Keiter representative or Email | Call 804.747.0000. We are here to help.

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About the Author

Michael Gracik, Jr.

Michael Gracik, Jr., CPA, Director

Mike works closely with his clients to identify tax planning and savings opportunities specific to their business and industry. His clients include closely-held businesses in the real estate, home building, manufacturing, construction, retail and wholesale industries. He also serves many estates, trusts and foundations. Read more of Mike’s insights on our blog.

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The information contained within this article is provided for informational purposes only and is current as of the date published. Online readers are advised not to act upon this information without seeking the service of a professional accountant, as this article is not a substitute for obtaining accounting, tax, or financial advice from a professional accountant.


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