Part of the Trump Tax Cuts (as currently being scribbled down by GOP Congressional teams behind closed doors) is getting rid of a number of tax deductions. The plan as proposed was going to do away with the deduction on state and local taxes, but keep the mortgage interest deduction. That’s unpopular in a number of quarters, but so would be getting rid of the mortgage one.
So there are suggestions floating around Congress that, instead, taxpayers might get their choice: if they decided to itemize their taxes (rather than just taking the enlarged standard deduction), they might be offered the choice of taking either the state/local tax deduction or the mortgage interest (but no longer both as is currently the case).
I think the only winners here are financial planners and tax software publishers. Well, and rich people, because they benefit from a lot of the other provisions in the tax cut plans.
Which Tax Deduction Would You Rather Lose: Your Mortgage Interest Or Your State/Local Taxes?
The Trump administration is moving forward with its plan to slash taxes on businesses, which means the government will have to get at least some of that money from elsewhere. Now comes news that ta…
Well that’s weird. So now that I’m in a state with no income tax I guess I win?
+Kee Hinckley Well, you won't be able to deduct your property taxes or auto registraton tax, but losing your state income tax deduction won't hurt you.