The Tax Cuts and Jobs Act, enacted in December 2017, limited the
itemized deduction for state and local taxes ("SALT") to
$10,000 per tax filer (or $5,000 for a married person filing
separately). Although this provision is scheduled to sunset after
2025, there is a reasonable possibility that this limitation may be
lifted as soon as next year, as part of a comprehensive revision of
the income tax code, depending on the outcome of the upcoming
elections.
If your current SALT expenses are over the current limitation,
there may be an opportunity to defer certain SALT expenses, such as
your real estate taxes, until next year. Depending on the state in
which you own real estate, your 2020 real estate taxes may be
payable in 2020 but not due until 2021. For instance, if you own
real estate in Florida, your 2020 real estate taxes are payable as
of November 1, 2020, but are not delinquent until April 1, 2021.
Should the tax code be changed to remove the SALT
