Transfer Of TitleTaxes
Transfer Of Title Practice Question
Under federal law, property taxes are deductible up to a combined limit of:
A
$5,000 for state and local taxesB
$10,000 for state and local taxes (SALT)C
$15,000 for property taxes onlyD
No limit on property tax deductionExplanation
The Tax Cuts and Jobs Act of 2017 capped the state and local tax (SALT) deduction at $10,000 ($5,000 for married filing separately). This includes property taxes, state income taxes, or state sales taxes combined.
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