Are You Ready for C-SALT
There is chatter about putting a limit on the deductibility of State and Local Taxes (SALT) for C corporations.
We know that some type of tax reform is coming sometime this year. Under current rules, individuals are limited as to how much state and local taxes (SALT) that they can deduct.
The current limit is $10,000 per married couple or single taxpayer (another example of the marriage penalty in taxes). However, S corporation and partnership owners are able to fully deduct SALT in certain cases.
There will likely be an increase in this limit as part of tax reform, however, many are now urging that Congress place a limit on the SALT deduction for C corporations (C-SALT). Revenue estimates range from about $350-600 billion of savings over ten years depending on the level of limits.
