The President signed on December 20th the “Taxpayer Certainty and Disaster Tax Relief Act of 2019” (only Congress could come up with these names). The Act is part of the overall omnibus spending package and apart of the “Further Consolidated Appropriations Act, 2020” (H.R. 1865, P.L. 116-94).
There are several tax provisions within the law that are extenders that had expired. The two most significate items in the Act affecting independent mortgage bankers:
- The Act retroactively extends this exclusion of income related to discharges of indebtedness of qualified principal residence before Jan. 1, 2021. (Code Sec. 108(a)(1)(E), as amended by Disaster Act Sec. 101(a))
- The Act extends this treatment of mortgage insurance premiums as qualified residence interest through 2020 for amounts paid or incurred after Dec. 31, 2017. (Code Sec. 163(h)(3)(E)(iv)(I)
BKM Sowan Horan, LLP is a full-service accounting firm with offices in Addison, Texas and Austin, Texas servicing the independent mortgage bankers with more than 75 years of combined partner experience.