Ernie-
Thanks for the response. Yes, I follow your response, but still do not understand the use of the Estimated taxes paid here - and yes, the SALT limitation (10K in my case) does limit damage here (possible miss-use of this deduction).
For instance, suppose I don't owe any State Sales Tax but go ahead and send them $10,000 in Estimated Tax Quarterlies. This would allow me to add an additional 10K in deductions on the Schedule A - allowing me to deduct an additional 10K off of my Income. I guess this is the part I am missing - or is that supposedly counter-balanced by a higher tax bill the following year (because of a possible $10K State refund). This is the only gotcha I see here.
ron in shawnee
