"SALT Deduction" Based on the "One Big Beautiful Bill Act" (OBBBA), signed into law by President Trump on July 4, 2025, there are significant changes to the state and local tax (SALT) deduction for the 2025 tax year. Here's a summary of the SALT deduction changes for 2025: * Increased Cap: The $10,000 SALT deduction cap established by the 2017 Tax Cuts and Jobs Act (TCJA) is temporarily quadrupled to $40,000. * Income Threshold for Full Deduction: The increased $40,000 deduction limit applies to households with a Modified Adjusted Gross Income (MAGI) of $500,000 or less ($250,000 for married individuals filing separately). * Phase-Out: For taxpayers with MAGIs exceeding $500,000, the $40,000 cap is phased down by 30% of the amount their income surpasses the threshold. * Minimum Deduction: Even with the phase-out, the law guarantees a minimum SALT deduction of $10,000 for all taxpayers. * Annual Increase: The $40,000 cap and the $500,000 income threshold for the phase-out will increase by 1% annually through 2029.…