Thanks. The confusing part is that the SALT deduction is capped to $40k and then it phases out to $10k for AGIs over $500k, while the actual state/property taxes paid are greater than those capped amounts.
There are suggestions to calculate the ratio of Total Investment Income (Section 8, Form 8960) and modified AGI (Section 13) and multiply that with the total (not capped) state, local, property taxes paid (Section 5a, Schedule A). Looks like TurboTax applies that formula.
So the amount is (Section 8/Section 13, Form 8960) * Section 5a (Schedule A).
Is that correct?
