Unlimited state and local tax deductions
Another change we’ll be experiencing in 2018 is regarding the SALT deductions (State And Local Taxes), which will be capped at $10,000. This change will have a pretty big impact on taxpayers who live in areas with high property taxes.
In fact, this new rule will affect citizens so much that states are actually thinking of strategies to offset the lost deduction and retain high-income taxpayers. In California, for example, new legislation allows residents to make contributions to a state charitable fund instead of taxes.
