IRS to issue regulations on payments in lieu of state and local taxes

May 29, 2018

The Tax Cuts and Jobs Act limited the state and local tax deduction for individual taxpayers to a $10,000 maximum.

In response, some states have introduced legislation that would allow taxpayers to make “donations” to funds controlled by state and local governments (such as school districts) in exchange for credits against state or local taxes, circumventing the $10,000 limitation.

The IRS says, “No dice,” and will issue regulations designed to thwart the work-around.

Get the details here.

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