Tax
Jul. 27, 2021
California enacts workaround for SALT tax deduction limit
A growing list of states are offering pass-through business owners a workaround for the $10,000 federal deduction limit on state and local taxes (known as SALT). Imposed by the Tax Cuts and Jobs Act of 2017 and effective through 2025, the SALT cap means that taxpayers whose combined state income tax and property tax exceeds $10,000 cannot claim a federal deduction.
Phil Jelsma
Partner and Chair of the Tax Practice Team
Crosbie Gliner Schiffman Southard & Swanson LLC (CGS3)
Email: pjelsma@cgs3.com
Phil is chair of the tax practice team at CGS3. He is recognized as a leading joint venture and tax attorney, with a 30-year background in real estate exchange transactions, syndications, nonprofit corporations and international tax planning.
A growing list of states are offering pass-through business owners a workaround for the $10,000 federal deduction limit on state and local taxes (known as SALT). Imposed by the Tax Cuts and Jobs Act of 2017 and effective through 2025, the SALT cap means that taxpayers whose combined state income tax and property tax exceeds $10,000 cannot claim a federal deduction.
Now California has joined the ranks of states that have developed a ...
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