The annual SALT cap runs through the end of 2025. States have offered workarounds, but the IRS has blocked most of them, including one involving charitable donations in exchange for credits on property tax payments. The IRS hasn’t weighed in on a plan by Connecticut to offer owners of partnerships and other so-called pass-throughs a state credit equal to 93 percent of an owner’s paid state tax. The workaround allows taxpayers to convert a state business into a federal deduction.
This article was provided by Bloomberg News.