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Old 10-02-2018, 07:17 AM
 
Location: SW Corner of CT
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We are getting close to the 10k mark in Property Tax alone, does this mean I am close to my limit for other taxable deductions ?
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Old 10-02-2018, 07:31 AM
 
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Quote:
Originally Posted by beer belly View Post
We are getting close to the 10k mark in Property Tax alone, does this mean I am close to my limit for other taxable deductions ?


If you have state income taxes you won't have any ability to deduct those if your property tax meets the 10K. Of course, its not really broken down like that - per tax. Its just 10K total for property and state income taxes.
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Old 10-02-2018, 08:24 AM
 
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State and Local Taxes is line 5 on the Schedule A tax form. They will change the instructions for the line to enter either the total amount or $10,000.
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Old 10-02-2018, 08:44 AM
 
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It would include sales tax too
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Old 10-02-2018, 12:16 PM
 
Location: OH>IL>CO>CT
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Quote:
Originally Posted by lchoro View Post
State and Local Taxes is line 5 on the Schedule A tax form. They will change the instructions for the line to enter either the total amount or $10,000.
You can see a draft copy of the 2018 Sch A at https://www.irs.gov/pub/irs-dft/f1040sa--dft.pdf

BTW, the draft of the main 1040 form is very different. The 1040a and EZ are to be discontinued. Several new schedules have been created( 1, 2, 3 , etc)

https://www.irs.gov/pub/irs-dft/f1040--dft.pdf
https://www.irs.gov/pub/irs-dft/f1040s1--dft.pdf
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Old 10-02-2018, 01:07 PM
 
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Property tax limits are chickenfeed compared to the SALT tax change.
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Old 10-02-2018, 01:08 PM
 
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What's your marginal tax rate? Chances are that even though your SALT is no longer deductible, you got a nice big marginal tax rate reduction which will put you ahead. (Unless you are a high earner, which based on you being close to $10k in property taxes, I am guessing you are not).
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Old 10-02-2018, 01:10 PM
 
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Assuming you are married:


MARRIED FILING JOINTLY & SURVIVING SPOUSES
2018 Tax Rates – Standard Deduction $24,000 2017 Tax Rates – Standard Deduction $12,700
10% 0 to $19,050 10% 0 to $18,650
12% $19,050 to $77,400 15% $18,650 to $75,900
22% $77,400 to $165,000 25% $75,900 to $153,100
24% $165,000 to $315,000 28% $153,100 to $233,350
32% $315,000 to $400,000 33% $233,350 to $416,700
35% $400,000 to $600,000 35% $416,700 to $470,700
37% Over $600,000 39.60% Over $470,700
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Old 10-02-2018, 01:11 PM
 
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Sorry it's hard to read. TAbles dont translate well. Left is 2018 and right is 2017. Your standard deduction will double. So unless you have over $24k in deductions, you won't even itemize anyway.
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Old 10-02-2018, 01:52 PM
 
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Default State And Local Taxes deductibility is capped at $10k, you still ALL THE REST of your deducations...

Quote:
Originally Posted by beer belly View Post
We are getting close to the 10k mark in Property Tax alone, does this mean I am close to my limit for other taxable deductions ?



This lays out the issue pretty clearly, it emphasizes which percentage of tax payers, by state, have utilized more exemptions than the new cap -- https://smartasset.com/taxes/trumps-...tion-explained


The new tax law also boosted the "standard deductions" substantially, which might eliminate the need to itemize deductions for many tax payers, BUT beyond the SALT cap there are still LOTS of potential deductions -- https://www.nerdwallet.com/blog/taxe...ns-tax-breaks/'


SUPER IMPORTANT FOR LANDLORDS -- the SALT does not apply! You can still deduct that expense because the cap does not apply to property used to generate income: https://www.forbes.com/sites/kellyph.../#609c98693b3a
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