The Bipartisan Budget Act of 2018 (BBA) retroactively extended a number of tax provisions through 2017 for individual taxpayers. Let's take a look at five of them.
1. Mortgage Insurance Premiums
2. Exclusion of Discharge of Principal Residence Indebtedness
3. Energy Saving Home Improvements
Note: This tax credit is cumulative and has been around for more than 10 years. As such, if you've taken the credit in any tax year since 2006, you will not be able to take the full $500 tax credit this year. For example, if you took a credit of $150 in 2016, the maximum credit you could take this year (2017) is $350.Furthermore, taxpayers should also note that they can only use $200 of this limit for windows.
4. Qualified Tuition and Expenses Taxpayers with income of up to $130,000 (joint) or $65,000 (single) can claim a deduction for up to $4,000 in expenses. Taxpayers with income over $130,000 but under $160,000 (joint) and over $65,000 but under $80,000 (single) are able to take a deduction of up to $2,000. Taxpayers with incomes above these threshold amounts are not eligible for the deduction.
5. Deductible Expenses for Live Theatrical Productions
Only the owner of a film, television production or a live theatrical production can make a Section 181 election and if you want to take the deduction on your 2017 tax return your first paid performance must have taken place in 2017. Furthermore, Section 181 only applies to live stage productions where the seating capacity for the performance is less than 3,000 seats and the production must be based on a written play (or book in the case of a musical). This tax provision is complicated. Please call if you need clarification. Don't miss out on the tax breaks you are entitled to. If you're wondering whether you should be taking advantage of these and other tax credits and deductions, don't hesitate to call the office. If you've already filed your 2017 federal tax return want to claim one or more of these retroactive tax breaks, please call for assistance in filing an amended tax return. |