CPA REG Exam-Itemized Deductions-State and Local Income and Property Taxes-By Darius Clark-#cpaexam

https://course.i75cpa.com/course/dari... On Schedule A, taxpayers can deduct certain state and local taxes they paid during the year. You can choose to deduct either: State and local income taxes, or State and local general sales taxes(You can't deduct both — just one or the other.) Some states like Florida, Texas and Nevada have no state income tax, so residents of those states deduct the sales tax. Income Taxes Includes: State and Local Tax Withheld from W-2 wages Estimated tax payments to state/local governments Any prior-year state or local tax you paid in the current year Sales Tax includes The IRS Sales Tax Table, or Your actual receipts (if you kept them) Deduct real estate taxes you pay on property you own. Applies to primary residence, vacation homes, land, etc. Deduct annual Personal Property Tax on a car owned. The total deduction for all state and local taxes (income/sales + property + personal property taxes) is limited to $10,000 ($5,000 if married filing separately). This cap applies regardless of how high your state income and property taxes are.