More Tax Cuts!! And Retroactive to 2017
Just when you thought it was safe to prepare your tax returns for 2017 – Congress passed more tax cuts as part of the two year budget agreement to keep the federal government operating. Better yet, many of the cuts are good for 2017. Here are five of the most popular:
First, mortgage insurance premiums are deductible again. This doesn’t affect many of our clients, since this tax break phases out based on income.
Second, the $500 energy credit is back. If you bought energy efficient doors, windows, or insulation in 2017, you may be eligible for the credit if you haven’t used up the $500 lifetime limit in prior years.
Third, in addition to the higher education tax credit that was still in effect, the optional deduction for up to $4,000 of tuition is back. You again have the choice of the credit or deduction. Of course, we help you make that decision.
Fourth, if you suffered a foreclosure or a short sale on your primary residence, the debt forgiveness income is excluded again. As before, this doesn’t apply to second homes or rental properties.
Finally, the credit for residential solar systems is back.
If we get tax cuts, every time Congress threatens to shut down the government, I’m in favor of shutting it down every day!
If you have any questions, please contact me at fstitely@skcpas.com or call (703) 818-8284. Thanks for reading!
Frank Stitely, CPA, CVA
Member / Partner