Understanding SALT Taxes: Maximizing Deductions Within Limits

Dr. Friday Tax Tips
Dr. Friday Tax Tips
Understanding SALT Taxes: Maximizing Deductions Within Limits
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In this insightful episode of ‘Dr. Friday Tax Tips – One Minute Moment,’ Dr. Friday, president of Dr. Friday’s Tax and Financial Firm, demystifies the complexities surrounding state and local taxes (SALT). She explains common misconceptions about property taxes and the opportunity to deduct sales taxes on significant purchases like mobile homes, motor homes, boats, or jet skis. Dr. Friday highlights the cap on SALT deductions – $10,000 for joint filers and $5,000 for those married filing separately, emphasizing the importance of careful planning to maximize deductions without losing tax dollars. Tune in to the Dr. Friday Call-In Show live every Saturday for more tax insights.

Transcript

G’day, I’m Dr. Friday, president of Dr. Friday’s Tax and Financial Firm. To get more info, go to www.drfriday.com. This is a one minute moment.

Let’s talk about state and local taxes, SALT taxes. So many times people will say, I double pay my property taxes. And of course, or I went out and I purchased a mobile home or a motor home or, or some sort of boat or jet ski. And so they want to write off the extra sales tax. And that is legitimate, but keep in mind sales tax, property taxes, personality tax, which in Tennessee, we really can’t deduct because there’s no state income tax involved in it. Then you only can get $10,000. Married, finally separately $5,000. So as hard as you work to make sure that number is as high as possible, you may be losing tax dollars when dealing with SALT tax.

You can catch the Dr. Friday Call-In Show live every Saturday afternoon from 2 to 3 p.m. right here on 99.7 WTN.