Q. Does the state income tax allow only a $10,000 deduction for real estate taxes? Also, on capital gains, can one deduct losses against gains on New Jersey 1040?
A. Thanks for your questions. The answers are short and sweet.
The property tax deduction is limited to a maximum amount of $10,000, said Steven Holt, an attorney and chair of the taxation, trusts and estates department at Mandelbaum Salsburg in Roseland.
“Capital gains and losses are netted so that the taxpayer needs only to report the net capital gain,” Holt said. “New Jersey taxpayers are not entitled to deduct or carry forward a net capital loss for any tax year.”
Good luck completing your returns!
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