I spoke to my CPA yesterday and today.

[no_hypocrisy]

Here's something interesting:

Until December 31, 2017, all states can deduct all municipal and state taxes.

On January 1, 2018, all states can only deduct a maximum of $10,000 of the total of municipal and state taxes. (Where I live in NJ, the property taxes are $16,000 annually.)

BUT

If you have investment property (i.e., you rent the property), you can STILL DEDUCT 100% of the municipal and state taxes as "expenses" from the profits you make from rental income.

[still_one]

1. yup, that is right

[rzemanfl]

2. Incorporate. Transfer the house to your corporation and rent it. Right? n/t

[eleny]

4. Rent it yourself from your corporation?

[we can do it]

8. Why not play their game.

[rzemanfl]

10. They will. n/t

[rzemanfl]

9. Yes. n/t

[roamer65]

12. Corporations are people now, so why the heck not?

[rzemanfl]

14. Wait until they try to get 60 votes to close that loophole. n/t

[brush]

3. Guess that was the add-on to get Corker's vote for the tax scam

[Eliot Rosewater]

5. Wait, let me confirm this.

So lets say I own a house and another house I rent out AND a commercial property I rent out.

Are you saying the limitation of $10,000 applies to my state income tax paid and the property tax for my HOME/primary dwelling only?

And my other two investment property related taxes such as property taxes are still fully deductible?

How would anyone even know for sure I thought most of this bill was still in hand written notes.

[Kirk Lover]

6. It's such corrupt bullshit, it's nice to see that they've created more loopholes for themselves.

[Eliot Rosewater]

7. The loopholes are the ones for the rich people, lots of folks have small investment properties

and if in a blue state it could wipe you out.

[Kirk Lover]

11. This is a loophole for them too and most people don't have investment properties.

[rzemanfl]

15. Over a thousand. Congrats. n/t

[Kirk Lover]

16. LOL I can't shut up!!!

[no_hypocrisy]

13. You got it.

Own and live in your house and you're limited to $10,000.

Own and rent out your house and you could be paying $40,000 a year in taxes and it's fully deductible.

[we can do it]

17. Dont forget depreciation on rental and expense everything.

[Sedona]

18. Be careful....

If you have an FHA or VA mortgage you may be required to occupy the home as your primary residence. Putting the title in a Corp or LLC may violate the terms of your loan.

Check with your lender before trying this.

[BSdetect]

19. Not if you earn over $150k per couple.

If you have investment property (i.e., you rent the property), you can STILL DEDUCT 100% of the municipal and state taxes as "expenses" from the profits you make from rental income.