Is PTE Dead?
It appears that the House is going to kill the ability to deduct pass-through-entity state income taxes
The House Tax proposal from yesterday makes some major changes to the State and Local Tax Deduction (SALT).
The current limit for individual taxpayers is $10,000. This Bill bumps the limit to $30,000 whether you file single or married. Another marriage penalty. It is half these amounts if you file separately.
However, if your modified adjusted gross income is over $400,000, then you have to reduce the deduction by 20%, but you are still allowed at least $10,000. Essentially, once your income goes over $500,000, your SALT limit is back to the old $10,000 level.
