Kelly Lopez, CPA

In recent years significant tax legislation has passed in order to stimulate our slow economy.  While this translates into additional tax deductions and credits for many taxpayers, keeping track of these benefits and the years they apply to can be challenging. Knowing if and when you can take a deduction will save you future headaches with the IRS.  It can also be a great tool for financial planning.  We have compiled a list of the most common tax provisions that are no longer available after 2009 and 2010, and those that will end at the end of this year. Keep in mind that this is only a summary, and you should contact a tax professional if you are unsure if they are available to you.

Federal Tax Provisions That Expired 12/31/2009

1) Real estate tax deduction for non itemized deduction returns.

2) Income exclusion for first $2,400 of unemployment benefits.

3) $250/$500 credit for government retirees.
Federal Tax Provisions That Expired 12/31/2010

1) Making work pay credit.

2) Deduction for health insurance costs in computing self-employment taxes.

3) Increase to $10,000 in amount allowed as a deduction for start-up expenditures.

4) Payroll tax forgiveness for hiring unemployed work.

Estate and Gift Tax

1) Election for executors of estates of decedents dying during 2010 to apply the 2010

EGTRRA estate tax and modified carryover basis rules.

2) Zero rate for generation skipping transfer tax.


Federal Tax Provisions Expire 12/31/2011

1) Personal tax credits allowed against regular tax and AMT.

2) Expansion of adoption credit and adoption assistance programs.

3) Credit for energy efficient appliances.

4) Work opportunity tax credit.

5) Increase AMT exemption amount.

6) Deductions for certain expenses of elementary and secondary school teachers.

7) Premiums for mortgage insurance deductible as mortgage interest.

8) Deduction for state and local general sales tax.

9) 100% bonus depreciation for qualified property.

10) Above-the-line deduction for qualified tuition and related expenses.

11) Tax-free distributions from IRAs for charitable purposes.

12)Temporary 2% payroll tax cut.

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