LIMITATION ON DEDUCTION FOR STATE AND LOCAL, ETC. TAXES.

SEC. 11042. LIMITATION ON DEDUCTION FOR STATE AND LOCAL, ETC. TAXES.(a) In General.—Subsection (b) of section 164 is amended by adding at the end the following new paragraph:“(6) Limitation on individual deductions for taxable years 2018 through 2025.—In the case of an individual and a taxable year beginning after December 31, 2017, and before January 1, 2026—131 STAT. 2086“(A) foreign real property taxes shall not be taken into account under subsection (a)(1), and“(B) the aggregate amount of taxes taken into account under paragraphs (1), (2), and (3) of subsection (a) and paragraph (5) of this subsection for any taxable year shall not exceed $10,000 ($5,000 in the case of a married individual filing a separate return).The preceding sentence shall not apply to any foreign taxes described in subsection (a)(3) or to any taxes described in paragraph (1) and (2) of subsection (a) which are paid or accrued in carrying on a trade or business or an activity described in section 212. For purposes of subparagraph (B), an amount paid in a taxable year beginning before January 1, 2018, with respect to a State or local income tax imposed for a taxable year beginning after December 31, 2017, shall be treated as paid on the last day of the taxable year for which such tax is so imposed.”.(b) Effective Date.—The amendment made by this section shall apply to taxable years beginning after December 31, 2016.