2nd Circuit Upholds SALT Cap

The Manhattan-based U.S. Circuit Court of Appeals for the 2nd District, by a unanimous 3-0 decision, has upheld the $10,000 cap on state and local tax (SALT) deductions as part of the Tax Cuts & Jobs Act (TCJA) signed by President Trump back in 2017. In addition to cutting taxes for corporate America as well…

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Senate Rejects Effort to Overturn SALT Deduction Cap

Earlier this week, the Senate rejected a bid by democratic members to overturn IRS regulations prohibiting states from creating charitable funds that taxpayers can contribute to in exchange for a state tax credit. The creation of the credits was an attempt by high-tax blue states such as New York, New Jersey and California to get…

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IRS Blocks SALT Workarounds

The Internal Revenue Department (IRS) issued final regulations this week that effectively blocked the effort by some states to get around the $10,000 cap on state and local tax (SALT) deductions imposed by the Tax Cuts and Jobs Act back in 2017. The workarounds, which allowed – and in most cases encouraged – local communities…

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New Jersey Adopts SALT Workaround

In the context of tax reform and last year’s Tax Cuts and Jobs Act, the state of New Jersey this week adopted regulations that would allow its taxpayers to skirt the new federal limit of $10,000 on state and local tax deductions. Under the New Jersey scheme, local governments across the state would be allowed…

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IRS Again Tweaking End-runs of New SALT Rules

Just 2 weeks after it proposed a new rule to block state efforts to circumvent the $10,000 state and local tax deductions limit (SALT), the Internal Revenue Service (IRS) this week clarified that companies that make business-related payments to charities or government entities may at times write off those donations as normal business expenses, just…

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