Is PTE Dead?

It appears that the House is going to kill the ability to deduct pass-through-entity state income taxes

Photo by Guillaume Henrotte on Unsplash

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.