$10k limit on property taxes for investment property-Fiduciary program

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Our Thompson Reuters Checkpoint research service states that pSALT, 1041roperty taxes on investment property should NOT be limited to $10k.  We request that you add a box to check that will allow the program to not limit the program to $10k for property taxes on investment property, regardless of the instructions for the 1065.  There are also multiple other articles regarding the fact that taxes paid on investment property should not be limited.  The practitioner should have the ability to discuss this with our clients and make this choice.

REGARDLESS, while the program is limiting taxes on investment property to $10k, it is carrying the full amount entered in Screen 31 to line 5 for Form 4952.  This does not appear to be correct, given that the program is only allowing a $10k deduction.  Therefore, we also believe there is a program error when the program does apply the $10k limitation.

Here is the research from Thompson Reuters Checkpoint:

“For the tax years 2018-2025, the 2017 Tax Cuts and Jobs Act limits the aggregate amount of deduction to $10,000 for state and local real property taxes; state and local personal property taxes; state, local, and foreign income taxes; and general sales taxes (if elected to deduct in lieu of state and local income taxes). The $10,000 limitation rule does not apply if these taxes are paid or accrued in carrying on a trade or business, or incurred in an activity described in IRC Sec. 212. Any amount paid for foreign real property taxes not incurred in carrying on a trade or business is no longer deductible.