One of the most controversial measures from the Tax Cuts and Jobs Acts (TCJA) of 2018 was the new limitation on state and local tax (SALT) deductions. Under the new legislation, individual taxpayers who itemize on their federal taxes could only deduct up to $10,000 paid to state and local governments on either property tax […]
How Does the Pass-Through Entity Tax Work? Read More »
The Tax Cuts and Jobs Acts (TCJA) of 2018 stirred up mixed responses by introducing a $10,000 cap on state and local tax (SALT) deductions for individual taxpayers. However, since the legislation did not include a limit for businesses, the states most impacted by the SALT cap have leveraged this as a workaround for their
Sidestepping the SALT Cap with the Pass-Through Entity Tax Read More »
Among its many changes, the Tax Cuts and Jobs Act of 2018 introduced a new limitation on state and local tax (SALT) deductions. The new $10,000 cap has primarily impacted taxpayers living in areas with high state-level taxes like California, Connecticut, Illinois, New Jersey, New York, or Pennsylvania. These states quickly began searching for ways
Hitting the Limit on State and Local Tax Deductions? Consider These Three Workarounds Read More »
When the Tax Cuts and Jobs Act of 2018 introduced a new $10,000 cap on state and local tax (SALT) deductions, taxpayers living in areas with high state-level taxes felt the hit. Highly-impacted states like California, Connecticut, Illinois, New Jersey, New York, or Pennsylvania quickly began searching for ways to provide relief to their taxpayers.
Three Workarounds for the Cap on SALT Deductions Read More »
Real estate can be a profitable investment, but once the investor is ready to sell, they also have to be ready to take a hit with the hefty capital gains tax. For investors who want to delay paying that tax and who are willing to stay in the real estate market, the IRS does offer
Taxpayers often make the mistake of focusing on the potential payout from an investment without considering how much of that will disappear to taxes. A classic example is real estate. Owning a business or investment property can result in significant profits, but when it comes time to sell that property, taxpayers may be unprepared for
Tax Deferral Strategies for Real Estate: The Four Types of 1031 Exchanges Read More »