top of page
Search

The "SALT Cap"

  • Writer: Kathryn Bruns, CPA
    Kathryn Bruns, CPA
  • Jan 10, 2020
  • 1 min read

Hi everyone, getting back to a bit of state tax with this post.


As a refresher, under what is now known as the "Trump Tax Reform", the deduction for state taxes has been capped at $10,000. State taxes are one of the popular deductions found on Form 1040's Schedule A "itemized deductions". For those people that had high real estate property taxes, this deduction cap was a harsh blow. For example, instead of a deduction for all state taxes of say, $20,000 that they would normally get, these folks now only get a $10,000 deduction.


Since the enactment of this SALT (state and local tax ) cap, there has understandably been a lot of outrage, and some state governments themselves have been trying to enact rules that mitigate this cap for their residents.


The latest on this topic is that the US House of Representatives has passed legislation that will suspend this cap for two years (for people with adjusted gross income under $100,000,000). It isn't a done deal yet, but it looks very promising. Fingers crossed !


Were you affected by the state tax deduction cap?


 
 
 

Recent Posts

See All
2025 business mileage rate

Happy New Year ! For those of you who use this, the new 2025 mileage rate has been announced. As a reminder, the 2024 rate was 67 cents...

 
 
 

Comments


bottom of page