Several tax provisions set to expire at end of 2020

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Several tax provisions set to expire at end of 2020

During a busy and historic year — with a global pandemic, disruptions to the economy, and postponements of normal tax deadlines — practitioners may have missed that many tax provisions are scheduled to expire at the end of the year. And while the annual expiration of tax provisions has become common, in most years Congress by December has at least considered legislation to extend some or all of them. This year is different, with no hint that Congress is prepared to take up extender legislation in the last few days of the year.

While many of the expiring provisions provide targeted incentives or do not affect many taxpayers, some affect many individuals or businesses, including the work opportunity credit; the exclusion from gross income of discharge of indebtedness on a principal residence; the 7.5% adjusted-gross-income (AGI) floor for medical expense deductions; and the deduction for qualified tuition and related expenses.

The following tax provisions will expire Dec. 31, 2020, if not extended by Congress:

Alistair M. Nevius, J.D., (Alistair.Nevius@aicpa-cima.com) is the JofA’s editor in chief, tax.

Research & References of Several tax provisions set to expire at end of 2020|A&C Accounting And Tax Services
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