As you begin to think about your 2017 tax bill, you need to be aware of several tax provisions that expired as of December 31, 2016:

  • Premiums for mortgage insurance deduction.
  • The medical expense deduction of 7.5% of adjusted gross income for individuals age 65 and older. Beginning in 2017, all taxpayers are subject to a medical expense deduction for costs that exceed 10% of adjusted gross income.
  • A deduction for qualified tuition and related expenses.

Several provisions are now permanent:

  • The required minimum distribution to charity allows taxpayers that are at least 70 ½ years old to make a distribution up to $100,000 to qualified charitable donations from individual retirement plans, without including the distributions in income.
  • The educator’s expense provision allows a deduction up to $250 on any unreimbursed expenses.
  • Qualified leasehold improvements, qualified restaurant buildings and improvements, and qualified retail improvements can be depreciated using 15-year straight-line depreciation.

Section 179 deductions can still be taken. The $500,000 amount and phase-out amounts of $2,000,000 will now be indexed for inflation.

There are two extended provisions:

  • The Work Opportunity Credit has been extended through 2019
  • Bonus depreciation has also been extended through 2019. A 50% deduction is available in 2017, 40% in 2018 and 30% in 2019. 

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