#federal-tax-policy

#federal-tax-policy

For the next five years, there will be a much more generous state and local tax deduction available to federal income tax filers, thanks to the recently enacted mega tax-and-spending-cuts law.

In 1997, the federal government created the capital gains exclusion to shield typical homeowners from taxes on the sale of their primary residence. Sellers could exclude up to $250,000 in profit-or $500,000 for joint filers. But those limits were never adjusted for inflation.