Expired Federal Provisions Extended for 2017

The budget bill that was passed by Congress earlier today included a section that extended the federal provisions (extenders) that expired at the end of 2016 for one year. Therefore the following federal provisions will be allowed on 2017 individual federal returns in the near future:

·        Tuition and Fees Deduction - Form 8917/Form 1040, line 34

·        Exclusion of gain from income of foreclosed home mortgage debt (Form 982, line   1e)

·        Non-business Energy Property Credit – Form 5695, Part II

·        Ability to treated mortgage insurance premiums as qualified mortgage interest on   Schedule A

·        Credit for 2-Wheeled plug-in electric vehicles

·        Credit for new qualified fuel cell motor vehicles

It is mentioned that they will be allowed in the near future because the IRS needs to add back the applicable lines to Form 1040, Schedule A and Form 5695 as well as modify the instructions for these forms. Also, the IRS needs to release a 2018 version of Form 8917 (Tuition and Fees Deduction), Form 8936 (Qualified Plug-In Electric Drive Motor Vehicle Credit) and Form 8910 (Alternative Motor Vehicle Credit).

As soon as the IRS releases these forms and instructions and when the IRS will allow 2017 individual returns with these items included on them we will let you know.