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Pease Limitation on Itemized Deductions

Pease Limitation on Itemized Deductions

Under New 2017 Tax Law: For tax years beginning after December 31, 2017 and before January 1, 2026, the “Pease limitation” is suspended.

 

Background:  Under 26 U.S. Code § 68, when higher-income taxpayers who itemized their deductions were subject to deductions of commonly known as the “Pease limitation” would be diminished by:

(a) 3% of the excess of Adjusted Gross Income over the applicable amount, or

(b) 80 % of the amount of the allowable.

 

Zaher Fallahi, Tax Attorney, CPA, is a Tax Controversy Attorney, and defends taxpayers in resolving their Income Tax and Offshore Accounts (FBAR and FATCA) problems. Telephones: (310) 719-1040 (Los Angeles), (714) 546-4272 (Orange County), e-mail [email protected]