U.S. states are starting to grapple with the state consequences of federal tax reform.
Recently, lawmakers in two states—California and New York—announced proposals to address one of the key provisions in the federal tax reform bill that was signed by the president on December 23, 2017―the elimination of the uncapped state and local tax (SALT) deduction. Going forward, for federal purposes, taxpayers can deduct up to $10,000 per year of state income or property taxes. This change may have the greatest impact on residents of states with high individual (personal) income taxes and/or property taxes.
Read a January 2018 report prepared by KPMG LLP
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