Sec. 110011. Limitation on tax benefit of itemized deductions
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Section 68 is amended to read as follows: In the case of an individual, the amount of the taxpayer’s itemized deductions shall be reduced by the sum of— 5/37 of the lesser of— the amount of the deduction allowable to the taxpayer under section 164 for such taxable year (determined without regard to this section), or the excess (if any) of— the taxpayer’s taxable income for such taxable year (determined without regard to this section and increased by the amount of the taxpayer’s itemized deductions), over the dollar amount at which the 37 percent rate bracket under section 1 begins with respect to the taxpayer, plus 2/37 of the lesser of— so much (if any) of the taxpayer’s itemized deductions as exceed the amount described in paragraph (1)(A), or the excess (if any) of— the amount described in subparagraph (1)(B)(i), over the sum of the amounts described in paragraphs (1)(A) and (1)(B)(ii).
For purposes of subsection (a), any reference to the taxpayer’s itemized deductions shall be treated as reference to such deductions determined without regard to this section. This section shall be applied after the application of any other limitation on the allowance of any itemized deduction. . The amendment made by this section shall apply to taxable years beginning after December 31, 2025.