On Friday, February 9, 2018, the Bipartisan Budget Act of 2018 was signed into law. The new law includes an extension of certain expired tax provisions for 2017, and tax relief for victims of Hurricanes Harvey, Irma, and Maria and the California Wildfires. Below is a summary of the key provisions affecting individual taxpayers.
Extended Tax Provisions for Individuals:
- Exclusion of discharge of indebtedness on a principal residence
- Mortgage insurance premiums as deductible qualified residence interest
- Deduction for qualified tuition and related expenses
- Credit for certain nonbusiness energy property
- Credit for residential energy efficient property
- Qualified fuel cell motor vehicle credit under
- Alternative fuel vehicle refueling property credit
- Credit for 2-wheeled plug-in electric vehicles
To read the full list of extended tax provisions, view the Senate Finance Committee Summary of the Tax Extenders Agreement.
The IRS released the following statement, “The IRS is reviewing the legislation signed February 9 that retroactively extended and modified numerous tax provisions covering 2017. We are assessing these significant changes in the tax law and beginning to determine next steps. The IRS will provide additional information as quickly as possible for affected taxpayers and the tax community.”
AHP is monitoring the situation and will provide pertinent information as it becomes available.