IRS Information Letter: SALT Dollar Limit Applies to Tenant Stockholder (IRC §164)

State and local tax dollar limitation under tax code Section 164(b)(6) ($10,000 ($5,000 if married filing separately)) applies to the deduction taken into account by a tenant-stockholder under Section 216 for the tenant-stockholder’s proportionate share of the real estate taxes paid or incurred by a cooperative housing corporation, the IRS determined. The IRS stated that the legislative history to the 2017 TCJA noted that the SALT limit applies to tenant-stockholders to put them on equal footing as homeowners paying real estate taxes. [IRS Info. Letter 2020-0010]

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