For IndividualsFor Educators
ExpertMinds LogoExpertMinds
ExpertMinds

Ace your certifications with Practice Exams and AI assistance.

  • Browse Exams
  • For Educators
  • Blog
  • Privacy Policy
  • Terms of Service
  • Cookie Policy
  • Support
  • AWS SAA Exam Prep
  • PMI PMP Exam Prep
  • CPA Exam Prep
  • GCP PCA Exam Prep

© 2026 TinyHive Labs. Company number 16262776.

    PracticeCPA®CPA REG Practice ExamQuestion 30
    Easy1 markMultiple Choice
    Area 3: Individual TaxationIndividual TaxationItemized Deductions

    CPA · Question 30 · Area 3: Individual Taxation

    A married couple filing jointly paid the following taxes in Year 1: State income tax ,000; Real estate tax on primary home ,000; Personal property tax on cars ,000. What is their itemized deduction for taxes (SALT)?

    Answer options:

    A.

    0,000

    B.

    0,000

    C.

    5,000

    D.

    ,000

    How to approach this question

    Sum the state/local taxes. Apply the 0,000 cap (TCJA rule).

    Full Answer

    B.0,000✓ Correct
    0,000
    The deduction for state and local taxes (income/sales plus property) is limited to 0,000 per year for MFJ taxpayers.

    Common mistakes

    Forgetting the SALT cap.
    Question 29All questionsQuestion 31

    Practice the full CPA REG Practice Exam

    72 questions · hints · full answers · grading

    Sign up freeTake the exam

    More questions from this exam

    Q01Under Circular 230, which of the following scenarios represents a permissible contingent fee arra...HardQ02A CPA is preparing a tax return for a client who wishes to take a position that the CPA believes ...MediumQ03Regarding the retention of client records under Circular 230, which of the following statements i...HardQ04Under the Ultramares rule regarding accountant liability to third parties for negligence, which o...MediumQ05Taxpayer A filed their Year 1 tax return on April 15, Year 2. The return omitted ,000 of gross in...Medium
    View all 72 questions →