The federal SALT deduction limit rises to $40,400 for 2026, but California taxpayers may lose part of the deduction when modified adjusted gross income exceeds $505,000. Learn how income tax, property tax, year end payments, and the PTE elective tax affect the deduction.

The wash sale rule under Internal Revenue Code §1091 limits when capital losses can be deducted, but investors can still maintain market exposure through correlated securities. This article explains how to use substitution strategies to harvest losses responsibly, outlines the benefits and risks, and reviews current crypto exceptions and proposed legislation.