The 6 TCJA Provisions Without a Sunset Date

Nov 19, 2024

Since its passage in 2017, the Tax Cuts and Jobs Act (TCJA) has introduced significant changes to federal tax regulations. Most provisions that impact individual taxpayers will sunset at the end of 2025, but a few important rules will remain. Here are six TCJA provisions that are set to continue indefinitely, barring any legislative changes.

Charitable Deductions for College Sports Tickets
Previously, donors could deduct 80% of payments made to colleges for the right to purchase athletic event tickets. The TCJA permanently eliminated these deductions starting in 2018, making contributions solely for sports tickets non-deductible.
Alimony Payment Deductions
For divorces finalized after December 31, 2018, the TCJA removed the deduction for alimony payments from the payer’s tax return. Additionally, alimony recipients no longer need to report these payments as taxable income, preventing the traditional tax-shifting strategy between payer and recipient.
Like-Kind Exchanges Limited to Real Property
The TCJA restricted Section 1031 like-kind exchanges to real estate only. Prior to this, tax-deferred exchanges were allowed for personal property as well, including items like vehicles and collectibles. This permanent change limits Section 1031 benefits to real property only.
Elimination of Roth Conversion Reversals
Before 2018, taxpayers could reverse a Roth IRA conversion to avoid taxes if they reconsidered the conversion. The TCJA permanently eliminated this option, meaning conversions are now final and irreversible.
Repeal of the ACA Individual Mandate Penalty
The TCJA removed the individual mandate penalty for not having minimum essential health coverage. Starting in 2019, individuals without health insurance are no longer penalized under the Affordable Care Act (ACA).
Expanded 529 Account Use
The TCJA allows up to $10,000 per year in tax-free distributions from 529 plans for K-12 tuition. This expanded use is permanent, enabling families to utilize these funds for educational expenses beyond college.

With ongoing legislative discussions, tracking which TCJA provisions remain permanent can be challenging. These six rules are set to stay, but it’s always in your best interest to consult a CSH tax advisor to stay updated on any changes and maximize tax-saving opportunities.

Mark Gaudet

Shareholder

Mark provides dependable assistance and advisement to clients related to income tax, transfer tax, philanthropic, and succession planning matters. Mark specializes in working with corporate executives, high-net-worth families, and closely held businesses.

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