House democrats have proposed increasing the State and Local Income Tax deduction (SALT) to $72,500 through 2031. This is a very aggressive proposal given the Tax Cut Jobs Act capped SALT at $10,000 and impacted many states with high income taxes notably New York and California. While this may not ultimately survive, it may be used as a way to bargain a slightly higher cap than the $10,000 currently in place which does not help those tax payers that are used to itemizing their returns through Schedule A.
Disclaimer: This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult a tax, legal and accounting advisors before engaging in any transaction or submitting any IRS form.
Ramin Mohammad
Ramin Mohammad is a lawyer and CPA with over 15 years of experience including working in audits, teaching, and in big law. Ramin helps clients on both personal and business related tax issues ranging from a multitude of practice areas including tax structuring, planning and cross jurisdictional taxes. His client-base expands throughout the US and overseas offering tax consulting, tax planning and tax preparation.
