Enrolled Agent Exam [Part 1] 33, State and Local Tax (SALT) Deduction

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: • The SALT deduction is capped at $10,000 per household, or $5,000 for Married Filing Separately taxpayers. • The cap applies to the combined total of state/local income (or sales) taxes, real property taxes, and personal property taxes. • Property taxes on business or rental properties are fully deductible on business schedules (like Schedule E) and are not subject to the personal SALT cap. • Taxpayers must elect to deduct either state and local income taxes or state and local sales taxes, not both. • State Pass-Through Entity Tax (PTET) elections are a workaround that shifts the tax payment to the business entity, bypassing an individual's $10,000 limit. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or Youtube Channel: https://www.youtube.com/@Open-exam-prep