The new tax reform put the screws to your Idaho state and local income tax deductions. Many states including Idaho have been putting together workarounds with little success.
But now the IRS is creating regulations to put the kibosh on your state’s creative plans.
In the absence of federal lawmakers changing their minds, your federal deductions for Idaho state income taxes face that $10,000 ceiling.
But you have planning opportunities to make more of your Idaho property taxes deductible by:
- creating or enlarging an Idaho home office business
- establishing or expanding a rental activity inside your home
- having your trade or Idaho business activity incur the property taxes
- capitalizing the property taxes