This includes property tax and either income tax or sales tax — on a combined basis. The cap could significantly reduce the SALT break for many taxpayers.
The break is intended to help businesses that won't benefit from the new 21% corporate rate. But not all pass-throughs will qualify.
The Tax Cuts and Jobs Act caused confusion regarding this deduction. The IRS offers guidance.
Bonus depreciation and Section 179 expensing provide businesses with bigger deduction opportunities.