Shortly before the Christmas holiday, Congress passed a bill extending a long list of expired tax provisions — some permanently, some for five years, and many for two years.The Journal of Accountancy published the details in an article explaining all that’s in the bill.
The bill makes permanent many individual and business extenders, including an enhanced child tax credit and earned income tax credit, the state and local general sales tax deduction, the ability to make tax-free distributions from IRAs for charitable purposes, the research and development credit, the enhanced Section 179 deduction, the 100% gain exclusion on certain small business stock, and the accelerated period for S-corporation’s recognition of built-in gains tax.
The bill includes a delay on the Cadillac tax on high-cost health coverage — it’s now effective for tax years beginning after Dec. 31, 2019. It also delays the 2.3% medical device excise tax under Sec. 4191, which will now not apply to sales during 2016 and 2017. And it puts a one-year moratorium on the Affordable Care Act’s annual fee on health insurance providers.