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$10,000 deduction limit!?!

Posted by Admin Posted on Oct 05 2018

What do you mean I can't deduct all of my state and local tax? Does that mean property, income and sales tax? What!!! That's right. The new tax changes are making it so that individuals can only deduct up to $10,000 of state and local taxes per year as an itemized deduction. That includes income/sales tax and property tax.

Luckily, this does not include tax paid on a rental or in a business. Does this mean that you should start renting out your basement in order to deduct part of the property tax that you won't be able to deduct? Does this mean starting up a home office to do the same? You tell me. If you don't do something, you can kiss the excess goodbye.