A few deductions will expire at the end of this year, so it’s important to act now to take advantage of them in the remaining months of 2016 and to adjust your plans for 2017 if you’re depending on using them.
Did you pay college costs during the year? A deduction for tuition and expenses paid for yourself, your spouse or a dependent can be used on your 2016 return, but it won’t apply in 2017. We can offer advice on other options, including a valuable education credit, the American Opportunity Tax Credit, which is permanent.
Planning a home purchase soon? Private mortgage insurance (PMI), the amount you typically pay when your down payment is below 20%, will only be deductible through the end of 2016.
If you were involved in a foreclosure, short sale or loan modification, you can exclude up to $2 million in forgiven debt from your taxable income, but only through this year.
Our experience, qualifications and broad knowledge about the tax system at Sterling Tax & Accounting is available to guide you through the maze of information that impacts your tax, business and financial regulations. We are here to help.