New State PTE Taxes Circumvent SALT Deduction Limit
Under the SALT deduction cap, taxpayers could lose thousands of dollars in deductions on federal taxes. According to a Government Finance Officers Association report, the state and local tax (SALT) deduction is used directly by nearly 30% of taxpayers, including individuals in every state and in all income brackets. The SALT deduction limit has a bigger impact on residents of high-tax states, such as New York, California and New Jersey.
Understand State Tax Workarounds to the Federal SALT Deduction Limit
Find insights and guidance below to understand the SALT deduction cap, state workarounds, and what tax practitioners need to know about pass-through entity (PTE) taxes.
QUESTION 1
Pass-Through Entity (PTE) Tax
QUESTION 2
State-by-State Tax Treatment
QUESTION 3
SALT Cap Opponents
QUESTION 4
IRS Guidance
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