The House Ways and Means Committee approved a tax bill which includes extension of various expiring tax provisions. Under the bill, many of the provisions set to be expiring at the end of 2019 will be extended until the end of 2020. Some of significant change being proposed are summarized below:
- Work opportunity tax credit
- Section 954(c)(6) Look-through treatment of transactions between CFCs
- New markets tax credit
- Credit for health insurance costs of eligible individuals
- Exclusion from gross income of discharge of qualified principal residence indebtedness
- Treatment of mortgage insurance premiums as qualified residence interest
- Medical expense deduction for expenses in excess of 7.5% of AGI
Additionally, under the 2017 Tax Reform the life-time gift and estate tax exemption amount has been temporary increased to $10 million until 2025 and set to be returned to $5 million. However, the extender bill would accelerate by three years that expiration of the temporary increase and the exemption amount would revert back to $5 million after 2022.
The extender bill will need to be agreed and approved by the both Senate and House before legislation could be sent to the president. We will continually monitor and provide updates on any developments.