SALT Deduction Cap Appears To Be Shifting Job Creation To Low Tax StatesCHUCK DEVORE
While some residents paying high property and income taxes will be losing out by not being able to fully deduct their expenses, other parts of the bill may offset the loss.The higher standard deduction will make itemizing no longer financially beneficial for some filers--making the cap on the ...
The SALT deduction cap also raises its head here. The California couple would pay state income tax and local property taxes of ~$41,000. The New Jersey example would pay ~$61,000. However, they are both able to deduct only $10,000. All totaled we get itemized deductions of about $30...
Before 2017, the SALT deduction was unlimited. The passage of the Tax Cuts and Jobs Act (TCJA) under then-President Donald Trump instituted the $10,000 cap as a way to pay for some of the other programs in that law [1]. When does the SALT cap expire? The current SALT deduction li...
But eliminating the SALT deduction cap would require Democrats to vote for a policy that disproportionately benefits wealthy Americans living in blue states. Households earning at least seven figures a year would receive the majority of the benefits, according to oneanalysisconducted by Tax Policy Cent...
With the inauguration of Donald Trump coming next week, there's a new push to repeal the so-called SALT cap on state and local tax deductions.
Given that $10,000 cap on the SALT deduction, you would need to find more than $2,200 in deductions elsewhere to justify itemizing on your tax return. Other expenses that you might be able to deduct: Mortgage interest (subject to a limit of $1 million or $750,000, depending on when...
Other states where taxpayers stand to benefit most from a SALT cap repeal include California, New Jersey, Illinois, Texas and Pennsylvania,according to an analysis by the Joint Committee for Taxation. Before the 2017 tax law, 91% of the benefits of the S...
The second reason is that there are a lot of moving parts. You've got the structure of the SALT deduction. Is it a cap? Should the cap instead be a floor? Which taxes should you be able to deduct? For example, you currently can't deduct the gasoline tax. That was re...
exemption at $10,000. Rather than welcome this as a step towards their goal of more redistribution, Democrats in hightax states moaned that they had been punitively targeted. Just before Build Back Better passed the House of Representatives on November 19th, they raised the cap to $80,000 ...