A government report has revealed that 11 million taxpayers are losing out on $323 billion worth of deductions due to a punishing change in President Donald Trump’s tax law. The deduction wallop detailed in the government report centers on capped deductions for state and local taxes — including real estate taxes. Formerly all local taxes could be deducted for federal taxes; now it’s capped at $10,000, which particularly hurts homeowners in major metropolitan areas — especially in the Northeast and California — where housing tends to be more expensive. The deduction hit is so staggering that it could end up swamping modest gains taxpayers had expected to enjoy due to tax cuts. Taxpayers’ ultimate status and how they’ll fair in different demographics won’t be completely known until an analysis after the end of tax season.

Source: Huffington Post March 02, 2019 11:48 UTC