How do you order SALT deductions? I want to max out property tax and use the balance as state income taxes paid.

Forum|Forum|6 years ago
December 7, 2019
12 replies
26 views

No text available

ProSeries Professional

This topic has been closed for replies.

Best answer by TaxMonkey

There is no official guidance on this, and likely won't be until next - if then.

T

TaxMonkeyAnswer

Level 7

There is no official guidance on this, and likely won't be until next - if then.

Accountant-Man

Level 13

I live in NJ, so the income taxes paid are only for the payments to the return; however, the RE taxes are a deduction up to $15,000 on the NJ return.

If the state income tax is $10,000, and the RE tax is at least $15,000, then on the federal return I only get $10,000. If I check the box to deduct sales tax instead of state income tax I get the same federal result, not counting NIIT.

The sales tax on Sch A is irrelevant, and the RE tax goes to the NJ return. And none of the NJ refund is taxable in 2019.

** I am "Elevating with Intention!"

T

The-Tax-Lady

Level 8

Subtract the SALT from the total RE Tax paid and the result is your maxed out RE tax.

Skip the SALT, use the sales tax option, if the RE tax is close to 10,000.

K

KeithinSanDimasAuthor

Level 3

I've got $10,000 in state income taxes paid and $6,000 in property taxes paid. How do I apportion it to $6,000 in property tax paid and $4,000 in state income tax paid? How do I know it's not just using the $10,000 in state income tax paid and ignoring the property taxes?

Sign up

Login with SSO

Let's get you signed in

Login with SSO