
There's both good news (for some) and bad news (for many) as we round the corner into December.
And I'm not talking about our culture, or politics, or sports, or anything like that.
I'm talking about TAXES.
I'll start with the good news. This is applicable to some of my readers only, but it is nice news for business owners in certain high tax states.
One of the difficult aspects of the TCJA was the "SALT" (state and local tax) deduction limitations. Specifically, in high-tax states, this represented a difficult setback in what could be deducted.
Well, one semi-sneaky way around this limitation has just been tentatively approved by the IRS in Notice 2020-75: paying these taxes on behalf of the owner or partners through an S-corp or partnership (pass through entity), and enabling them to be counted as a business expense.
This workaround immediately came into effect in MD, LA, CT, NJ, OK, RI and WI. Four more states already have legislation on the dockets: AL
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