Re:Barcelona Fines Landlords Who Let Buildings Sit Empty
by toast0 on Tuesday March 19, 2019 @03:25AM
(#19428773)
Into the weeds a bit here, but if you deducted your payments to the state in 2017 on your federal 2017 tax return (filed in 2018), and you got a refund from the state in 2018, you should be entering that on your federal 2018 tax return.
Since you won't be deducing SALT in 2018, any state refund in 2019 wouldn't be reportable for federal tax year 2019.
If this were otherwise, people would have purposefully massively over pay to the state in 2017, claim a large deduction in tax year 2017, get a large refund in 2018, and not have to pay back the deduction they didn't really deserve.
Re:Barcelona Fines Landlords Who Let Buildings Sit Empty
by CydeWeys on Tuesday March 19, 2019 @11:49AM
(#19431948)
Yup. I happen to be in an AMT situation where the state refund from last year isn't taxable this year, but it might still be for others as you point out.
Since you won't be deducing SALT in 2018, any state refund in 2019 wouldn't be reportable for federal tax year 2019.
If this were otherwise, people would have purposefully massively over pay to the state in 2017, claim a large deduction in tax year 2017, get a large refund in 2018, and not have to pay back the deduction they didn't really deserve.