Changes to the 2018 Publication 530 due to the Taxpayer Certainty and Disaster Tax Relief Act of 2019

 

The Taxpayer Certainty and Disaster Tax Relief Act of 2019 included retroactive tax relief for tax year 2018.  The 2018 Publication 530 is not being revised at this time.  Instead, see the information below for further details. 

  • Expired tax benefits. Certain tax benefits, including the following, that were set to expire have been extended.
    • The itemized deduction for mortgage insurance premiums has been extended through 2020.
    • The credit for nonbusiness energy property has been extended through 2020.
    • The exclusion from income of discharges of qualified principal residence indebtedness has been extended through 2020.
  •  Discharge of qualified principal residence indebtedness before 2021. Qualified principal residence indebtedness can be excluded from income for discharges before January 1, 2021. 
  • Residential energy credits. You may be able to take a credit if you made energy saving improvements to your home located in the United States in 2018. See Form 5695, Residential Energy Credits, for more information. 
  • Mortgage debt forgiveness. You can exclude from gross income any discharges of qualified principal residence indebtedness made after 2006 and in most cases before 2021. You must reduce the basis of your principal residence (but not below zero) by the amount you exclude. See Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness (and Section 1082 Basis Adjustment), for more information.

If the retroactive tax relief provided by the Taxpayer Certainty and Disaster Tax Relief Act of 2019 impacts your 2018 tax return, you can find more information about amending a tax return at  IRS.gov/Form1040X.