ExpertEasy1 markMultiple Choice
CPA · Question 30 · Area 3: Individual Taxation
A married couple filing jointly paid the following taxes in Year 1: State income tax ,000; Real estate tax on primary home ,000; Personal property tax on cars ,000. What is their itemized deduction for taxes (SALT)?
A married couple filing jointly paid the following taxes in Year 1: State income tax ,000; Real estate tax on primary home ,000; Personal property tax on cars ,000. What is their itemized deduction for taxes (SALT)?
Answer options:
A.
0,000
B.
0,000
C.
5,000
D.
,000
How to approach this question
Sum the state/local taxes. Apply the 0,000 cap (TCJA rule).
Full Answer
B.0,000✓ Correct
The deduction for state and local taxes (income/sales plus property) is limited to 0,000 per year for MFJ taxpayers.
Common mistakes
Forgetting the SALT cap.
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