(a) In General.--Subsection (b) of section 164 is amended  by adding at the end the following new paragraph:
        ``(6) Limitation on individual deductions for
    taxable years 2018 through 2025.--In the case of an
    individual and a taxable year beginning after December
    31, 2017, and before January 1, 2026--
                ``(A) foreign real property taxes shall not
            be taken into account under subsection (a)(1),
            and
                ``(B) the aggregate amount of taxes taken
            into account under paragraphs (1), (2), and (3)
            of subsection (a) and paragraph (5) of this
            subsection for any taxable year shall not
            exceed $10,000 ($5,000 in the case of a married
            individual filing a separate return).
    The preceding sentence shall not apply to any foreign
    taxes described in subsection (a)(3) or to any taxes
    described in paragraph (1) and (2) of subsection (a)
    which are paid or accrued in carrying on a trade or
    business or an activity described in section 212. For
    purposes of subparagraph (B), an amount paid in a
    taxable year beginning before January 1, 2018, with
    respect to a State or local income tax imposed for a
    taxable year beginning after December 31, 2017, shall
    be treated as paid on the last day of the taxable year
    for which such tax is so imposed.''.
(b) Effective Date.--The amendment made by this section  shall apply to taxable years beginning after December 31, 2016.

For purposes of subparagraph (B), an amount paid in a
    taxable year beginning before January 1, 2018, with
    respect to a State or local income tax imposed for a
    taxable year beginning after December 31, 2017, shall
    be treated as paid on the last day of the taxable year
    for which such tax is so imposed.