The IRS has blessed this workaround for dodging the cap on state and local taxes

By External Author |

The IRS has signaled it will bless a workaround that allows small-business owners to skirt the $10,000 cap on state and local income tax deductions.

Ever since the Tax Cuts and Jobs Act took effect in 2018, high-tax states have sought ways to help individual taxpayers who itemize on their returns deal with the $10,000 limit.

Last year, the IRS and Treasury blocked one of those strategies, legislation in New York, New Jersey and Connecticut that would have allowed municipalities to create charitable funds to pay for local services and offer property tax credits to incentivize homeowners to give.

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Original Article Source Credits:   CNBC ,

Article Written By:  Darla Mercado

Original Article Posted on:   NOV 18 2020

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