Sec. 11042. Limitation on deduction for State and local, etc. taxes
212 words·~1 min read·
/bill/115/hr/1/unknown/section-11042A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Subsection
(b)of section 164 is amended by adding at the end the following new paragraph: In the case of an individual and a taxable year beginning after December 31, 2017, and before January 1, 2026— foreign real property taxes shall not be taken into account under subsection (a)(1), and the aggregate amount of taxes taken into account under paragraphs (1), (2), and
(3)of subsection
(a)and paragraph
(5)of this subsection for any taxable year shall not exceed $10,000 ($5,000 in the case of a married individual filing a separate return). The preceding sentence shall not apply to any foreign taxes described in subsection (a)(3) or to any taxes described in paragraph
(1)and
(2)of subsection
(a)which are paid or accrued in carrying on a trade or business or an activity described in section 212. For purposes of subparagraph (B), an amount paid in a taxable year beginning before January 1, 2018, with respect to a State or local income tax imposed for a taxable year beginning after December 31, 2017, shall be treated as paid on the last day of the taxable year for which such tax is so imposed. . The amendment made by this section shall apply to taxable years beginning after December 31, 2016.