Question D$-4$

In prior years, state and local property tax and sales tax expenses were generally fully deductible on a federal tax return; and that amount was then transferred to the California tax return. The new TCJA tax law has established new rules; consequently, California does not conform to the federal tax law changes. The new federal rules state that beginning in $2018,$ the state and local property tax and sales tax expenses are limited to what amount?

a$)$ $$8,500$

b$)$ $$10,000$

c$)$ $$10,500$

d$)$ $$12,700$