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lb80
Level 2

Ramification of TCJA sunset for CA propery Taxes

Presuming the Dec. 22, 2017, Tax Cuts and Jobs Act (TCJA) sunsets in 2025 as planned with no congressional changes:

Does this mean CA residents will now be able to deduct ALL of their property tax without limitation?

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1 Reply
NateTheGrEAt
Employee Tax Expert

Ramification of TCJA sunset for CA propery Taxes

Hi @lb80 and thanks for writing in! 

 

If the TCJA sunsets and is not modified or extended, and Congress does not pass any other modifications to any of the laws prior to 2026, then it appears the portions of tax law that were changed by that law would revert to the pre-2018 versions of those laws. That would remove, among other things, the "SALT limitation" (State And Local Tax) of $10,000 that currently exists under TCJA. 

 

I hope this information is helpful!

 

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