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? 

$ 8,500

$10,000 

$10,500 

$12,700