Fiscal Cliff Tax Changes
The most frequently asked tax questions related to Fiscal Cliff Tax Changes
Sales Tax Deduction Extended
Asked Tuesday, January 01, 2013 by an anonymous userCPA Answer:
The state sales tax deduction was reinstated for 2012 and extended for 2013
Debt Forgiveness of Residence
Asked Thursday, December 20, 2012 by an anonymous userCPA Answer:
Tax Relief for Taxpayers Who Lose Their Homes Due to Foreclosure will remain for one more year. Debt forgiven in connection with the foreclosure of a principal residence will be considered nontaxable
What provisions would have expired had Congress not made a retroactive reinstatement?
Asked Tuesday, January 03, 2012 by an anonymous userCPA Answer:
There are more than 40 provisions that expired on 12/31/11 that Congress retroactively reinstated. A brief list that may affect taxpayers are:
Allowance of personal tax credits against regular tax and AMT under Code Sec. 26(a)(2).
Nonbusiness energy property credit under Code Sec. 25C.
Above-the-line deduction for up to $250 of certain expenses of elementary and secondary school teachers under Code Sec. 62.
Election for itemizers to deduct State and local general sales taxes under Code Sec. 164(b)(5) in lieu of a state and local income taxes
Above-the-line deduction for qualified tuition and related expenses under Code Sec. 222.
Treatment of mortgage insurance premiums as qualified residence interest under Code Sec. 163(h)(3)(E).
Tax credit for first-time District of Columbia homebuyers under Code Sec. 1400C(i).
Adoption assistance programs under Code Sec. 137.
Allowance of personal tax credits against regular tax and AMT under Code Sec. 26(a)(2).
Nonbusiness energy property credit under Code Sec. 25C.
Above-the-line deduction for up to $250 of certain expenses of elementary and secondary school teachers under Code Sec. 62.
Election for itemizers to deduct State and local general sales taxes under Code Sec. 164(b)(5) in lieu of a state and local income taxes
Above-the-line deduction for qualified tuition and related expenses under Code Sec. 222.
Treatment of mortgage insurance premiums as qualified residence interest under Code Sec. 163(h)(3)(E).
Tax credit for first-time District of Columbia homebuyers under Code Sec. 1400C(i).
Adoption assistance programs under Code Sec. 137.