The IRS recently issued a news release that notes while some states are planning or have already implemented workarounds for the State and Local Tax (SALT) deductions, specifically mentioning state-established “charitable funds”, that the IRS is planning to issue proposed regulations in the near future to disallow these contributions. Those contributions would likely be determined by substance-over-form principles and be disallowed after the maximum $10,000 deduction for SALT taxes that was enacted by the Tax Cuts and Jobs Act.
New Jersey has responded to the notice by writing a letter discouraging the IRS from going down that path.
To learn more see IRS news release IR-2018-122 or Notice 2018-54 which both address the issue.
New Jersey has responded to the notice by writing a letter discouraging the IRS from going down that path.
To learn more see IRS news release IR-2018-122 or Notice 2018-54 which both address the issue.
