Beat some of the new limits on state tax deductions

Tax reform under the Tax Cuts and Jobs Act has put your state and local tax deductions in the crosshairs.

Thanks to lawmakers, your federal deductions for state income taxes now can’t exceed a $10,000 ceiling. And that’s just for starters.

But don’t lose heart. Once again the Tax Reduction Letter comes to the rescue with specific strategies you can use to keep more money in your pocket.

Don’t miss the valuable information we’ve got waiting for you when you read my new article titled Tax Tips: How to Beat Some of the New TCJA Limits on State Tax Deductions?

Three ways our fact-filled article can help you:

1. We’ll explain how the new law works. Tax reform took two direct actions against your state and local tax deductions. One of them imposes the $10,000 ceiling mentioned above. BUT … the $10,000 limit doesn’t apply to three kinds of taxes. We’ll tell you what they are when you read the full after-tax-reform article.
2. We’ll explain a number of strategies you can use to cut your tax bill. For example, you can allocate more real property taxes to your home office, and more property taxes to your rental activity. You can also elect to forgo a current deduction for real-property taxes (and other carrying charges) and include them in the tax basis of your real property. This will reduce your gain (or increase your loss) when you sell. You’ll get full details when read the full after-tax-reform article.
3. We’ll show you how to handle your foreign income taxes. Good news. Foreign income taxes aren’t subject to the $10,000 limit. The law lets you claim your foreign income-tax payments as itemized deductions. Or you can take the foreign tax credit instead. We suggest the second alternative. Why? You’ll find out when you read the full after-tax-reform article.