eTax Alert™
An Extender Bill and Estate Tax Reform Are in Our Future
Many federal tax provisions are set to expire or change soon, and Congress has to address them before adjournment. Following is a list of 20 tax provisions that are due to expire at the end of 2009. Not all items on the list will be renewed; for example, it's unlikely that we will have another moratorium on required minimum distributions, but many will be extended. And certainly Congress, which recently has been occupied with health reform, will soon attack the estate tax problem that is rearing its head from six feet under.
Tax Provisions Due to Expire
| IRC |
Provision |
Expiring |
| 36 |
First-time homebuyer credit |
11/30/2009 |
| 41 |
Research and experiment tax credit |
12/31/2009 |
| 55(c) |
AMT reduced by nonrefundable credits |
12/31/2009 |
| 55(d) |
AMT exemption |
12/31/2009 |
| 62 |
$250 teacher deduction |
12/31/2009 |
| 164 |
Sales tax in lieu of state income tax |
12/31/2009 |
| 164(a)(6) |
Sales tax on auto purchase added to standard deduction |
12/31/2009 |
165 |
Casualty loss floor increased from $100 to $500 |
12/31/2009 |
63(c) |
$500/$1,000 property tax deduction added to standard
deduction |
12/31/2009 |
85(c) |
$2,400 tax-free unemployment compensation |
12/31/2009 |
168 |
15-year recovery period for leasehold improvements
and restaurant improvements |
12/31/2009 |
| 170 |
Enhanced deduction for corporate contributions of
scientific property to schools |
12/31/2009 |
| 170 |
Enhanced deduction for business contributions of
food, books, and inventory |
12/31/2009 |
| 222 |
Tuition deduction |
12/31/2009 |
| 401(a)(9) |
Moratorium on required minimum distribution |
12/31/2009 |
--Sharon Kreider
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