Changes to the SALT deduction caused chaos soon after the law was enacted. Many homeowners rushed out in Dec. 2017 to prepay their 2018 real property taxes, thinking they could deduct them on 2017 returns while the write-off was unlimited. Local governments revised computer systems to accept tax prepayments in 2017 for the 2018-19 year. But IRS acted quickly to rein this in, saying in a news release that property tax prepayments are deductible only if the tax was assessed in 2017. People living in high-tax blue states will be hit hardest by the new SALT rules. Among the most affected states: Calif., Conn., Md., N.J., N.Y. and Ore. A few states have already passed laws to blunt the impact of the $10,000 cap. N.Y. was the first to enact legislation in April, with N.J. and Conn. following soon after. The aim is to convert nondeductible taxes into deductible charitable gifts. For example, under the N.Y. law, New Yorkers will be given the option to contribute to a state-operated charitable fund in exchange for a credit, equal to 85% of their gift, that can be used against their N.Y. state individual income tax liability. The statute also authorizes local governments to create charitable funds to accept contributions in exchange for a property tax credit of up to 95% of the taxpayer’s donation.