Pre-Tax Law

Individual taxpayers could record various state and local level taxes paid as itemized deductions. These taxes included real and personal property taxes, income taxes and/or sales tax.

New Law

This deduction is now limited to $10,000 and foreign real property taxes are not deductible. Because of the higher standard deduction (see the previous article on Standard Deductions), less taxpayers will be itemizing and thus benefiting from this deduction