Unexpected opportunity to save taxes!
Under the Tax Cuts and Jobs Act of 2018, taxpayers could only deduct a yearly combined maximum of $10,000 of their state income taxes and property taxes on their Federal tax return which became known as the SALT limitation.
Assembly Bill 150 provided a workaround to the SALT limitation which was confirmed by the IRS via notice 2020-75. This set of regulations has provided an unexpected opportunity for business owners to save a great deal of taxes.
How Does It Work?