Tax reform put the screws to your state and local income tax deductions. Many states disliked that and have been putting together workarounds.
But now the IRS is creating regulations to put the kibosh on your state’s creative plans.
In the absence of federal lawmakers changing their minds, your federal deductions for state income taxes face that $10,000 ceiling.
But you have planning opportunities to make more of your property taxes deductible by
- creating or enlarging a home office,
- establishing or expanding a rental activity inside your home,
- having your trade or business activity incur the property taxes, or
- capitalizing the property taxes.
If you are being hurt by the $10,000 ceiling and would like my help with making more of your property taxes deductible, please don’t hesitate to call me on my direct line at 561-707-6496.
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This content supports Bolko & Associates’ marketing of professional services and is not written tax advice directed at the particular facts and circumstances of any person. If you are interested in the topics presented herein, we encourage you to contact us or an independent tax professional to discuss their potential application to your particular situation. Nothing herein shall be construed as imposing a limitation on any person from disclosing the tax treatment or tax structure of any matter addressed herein. To the extent this content may be considered to contain written tax advice, any written advice contained in, forwarded with or attached to this content is not intended by Bolko & Associates to be used, and cannot be used, by any person for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code.
The information contained herein is general in nature and is based on authorities that are subject to change. It is not, and should not be construed as, accounting, legal or tax advice provided by Bolko & Associates, LLC to the reader. This material may not be applicable to, or suitable for, the reader’s specific circumstances or needs and may require consideration of tax and nontax factors not described herein. Contact Bolko & Associates LLC or other tax professionals prior to taking any action based upon this information. Changes in tax laws or other factors could affect, on a prospective or retroactive basis, the information contained herein; Bolko & Associates LLC assumes no obligation to inform the reader of any such changes. All references to “Section,” “Sec.,” or “§” refer to the Internal Revenue Code of 1986, as amended.