This one may apply to anyone outside of the state of Florida much more than those here - the "Taxes Paid" deduction, also called the SALT deduction, under the new law, is capped at $10,000 - this includes state and local property taxes paid (and assessed) and state and local income tax paid as well as the sales tax deduction most taxpayers in Florida would use. For those of you especially in higher income tax states such as California, New York, and New Jersey, this could have a dramatic impact on your tax return.
In the past you could deduct 100% of states and local income and property taxes, which can add up to a pretty significant amount. Many states rushed to get assessments out to their property owners to allow them to prepay their 2018 property taxes in 2017 to take advantage of the unlimited deduction while it was still available.
If you are someone who normally claims a deduction for taxes paid you should definitely speak to a tax professional, such as myself, about the potential change coming your way to effectively plan for 2018 going forward.
We are on top of this new tax law here at LCI Taxes and are ready to help you and your family prepare for these changes as well as any others that may be forthcoming. Give us a call at 386-586-3976 with questions or to schedule your appointment!
Chris Kocher CPA