SALT tax question

A question came up about which tax should be applied to the 10k cap of SALT.  Lets say my client has 20k in state income taxes withheld from his salary and lives in a house with 10k of real estate taxes.  Can I apply only the real estate tax deduction for his itemized deductions to avoid have to claim the his state income tax refund as income on his Federal return for 2019?  Thank you in advance for your help.

Answer

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Since the SIT does not given rise to any tax benefit as R/E taxes on its own would have reached the limit for tax deductions, the refund of SIT would be part of the recovery exclusion and should not be taxable.

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