Not all property tax deductions are limited

There are exceptions to the $10,000 cap

Property owners have been turning to online tax forums the past few years with a head-scratching question that usually goes something like this: “Why is my tax preparation software limiting my itemized deductions for property taxes to $10,000 on my federal return?”

In fact, the 2017 Tax Cuts and Jobs Act (TCJA) brought with it numerous changes affecting businesses and individuals. One controversial change for individuals was the $10,000 cap placed on itemized deductions for state and local taxes, including property taxes.

This article published by Texas Realtor® magazine explains that how the cap is applied isn’t always as clear as it may seem.  Read the complete Texas Realtor® article here, and another article on this topic here.