On December 27, 2020, President Trump signed The Taxpayer Certainty and Disaster Tax Relief Act of 2020 (TCDTR or the “Act”), part of the Consolidated Appropriations Act of 2021, which included numerous tax extenders.

Many of these tax considerations are important for business owners and individuals, while others are limited in scope and address issues that are critical to a more narrowly defined audience.

Included here - in the chart below - are the most relevant tax issues and a brief explanation of how they were previously defined, what has changed as a result of the new Act, and what the impact will be on corporate leaders/owners in the business community and on individual taxpayers.

We have also included a list of the remaining issues which may be less meaningful to a general audience. However, if any of these present a concern for you, we will be happy to discuss them – and address your specific situation – at your convenience. 

It is helpful for you to know that the new Code contains dozens of temporary tax provisions that have a fixed termination date that may be temporarily extended for a short period of time, such as one or two years.

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We hope the brief outline of changes as explained in the chart above for the tax extenders has been helpful. We are available to discuss these in greater detail as appropriate for you. 

Here are other areas of concern covered in the new Act that are applicable for a more restricted target audience:

  • New Markets Credit
  • Exclusion for Certain Employer Payments of Student Loans
  • Energy Efficient Commercial Buildings Deduction
  • Look-Thru Rule for Related Controlled Foreign Corporations
  • Benefits Provided to Volunteer Firefighters and First Responders
  • Empowerment Zone Incentives
  • Renewable Energy Credits
  • Work Opportunity Credit
  • Exclusion from Gross Income of Discharge of Qualified Principal Residence Indebtedness and Reduction in Maximum Indebtedness Limits
  • Credit for Health Insurance Costs of Eligible Individuals
  • Premiums as Qualified Residence Interest 

Please feel free to contact us with any questions or concerns you may have!

David.Seligman@Sobelcollc.com

Scott.Cost@Sobelcollc.com