$10,000 property tax deduction cap impact on house hacking

[Account Closed]

Hi!

Just have a very quick question regarding the newly proposed $10,000 property & state income tax deduction cap. 

How would it affect the property tax deduction for house hacking (buying a multifamily and living in one unit while renting out the others) for someone who decides to opt for the $10,000 state & local income tax deduction instead?

Was originally planning on house hacking in NJ but possibly having second thoughts depending on the impact of the new bill.

Thanks for your input!

[Logan Allec]

You would prorate your property expenses between the portion you occupy and the portion your tenants occupy, and only property taxes on the portion of the property that you occupy would be subject to the new limitation.