CDZ State and local tax limitation on tax deductibility

[usmbguest5318]

There's been much talk from advocates of the State and local tax (SALT) limitation on tax deductibility. The current GOP plan limits the SALT itemized deduction to $10K. That seemingly denies some measure of the SALT deduction folks take for their million-dollar-plus homes.

Well, it doesn't really work out that that is the case. The GOP tax bill (post committee), based on what my tax planner/advisor tells me, has a tiny exception that results in a huge "no difference from before" loophole. The exception allows for the full deductibility (no ceiling) for SALT paid or accrued in carrying on a trade or a business ... [or on expenses related to] production of income.

• What does that mean? It means that if one earns one's income via an S-corp, partnership or sole proprietorship, one can deduct the entirety of SALT paid.
• To whom does that apply? It applies to a ton of people; pass-through entities are the most common form of business entity. If you are a partner in a firm, it applies to you. If you are a sole proprietor, it applies to you. If you are part owner in an S-corp, it applies to you. If you are like most such business owners, at the very least you live in a home and own business property for which the property taxes greatly exceed $10K/year. If you're doing fairly well, you own a second or third home, which surely puts your SALT payments above $10K. Well, worry not, you aren't going to lose that deduction.

Some of you may recall Trump asserting that the GOP plan was going to "cost [him] a fortune, believe me, believe me." Notwithstanding that he's not identified specifically what provisions of it are going to cost him anything, much less a lot, one can be sure that the SALT provision isn't among those that will increase his tax liability.

FWIW, neither will dropping the pass-through marginal tax rate to 20%. Currently, people in Trump's assumed income bracket are subject to a marginal tax rate of 39.6%. Of course, one need not have anywhere near as apparently high a taxable income as Trump to be in the 39.6% bracket. Barely rich folks who have taxable incomes of $500K or so also are in that bracket.

 

[Dont Taz Me Bro]

I think it's well past time that New York and California leftists paid their fair share.

 

[usmbguest5318]

I think it's well past time that New York and California leftists paid their fair share.

What has that to do with the nature or extent of SALT's deductibility as stipulated in the current GOP tax bill?

 

[Toronado3800]

I think it's well past time that New York and California leftists paid their fair share.

I don't get it, how does that apply here? (This is the CDZ, did it just pop up on the active post list and you replied?)

 

[Darkwind]

There's been much talk from advocates of the State and local tax (SALT) limitation on tax deductibility. The current GOP plan limits the SALT itemized deduction to $10K. That seemingly denies some measure of the SALT deduction folks take for their million-dollar-plus homes.

Well, it doesn't really work out that that is the case. The GOP tax bill (post committee), based on what my tax planner/advisor tells me, has a tiny exception that results in a huge "no difference from before" loophole. The exception allows for the full deductibility (no ceiling) for SALT paid or accrued in carrying on a trade or a business ... [or on expenses related to] production of income.

• What does that mean? It means that if one earns one's income via an S-corp, partnership or sole proprietorship, one can deduct the entirety of SALT paid.
• To whom does that apply? It applies to a ton of people; pass-through entities are the most common form of business entity. If you are a partner in a firm, it applies to you. If you are a sole proprietor, it applies to you. If you are part owner in an S-corp, it applies to you. If you are like most such business owners, at the very least you live in a home and own business property for which the property taxes greatly exceed $10K/year. If you're doing fairly well, you own a second or third home, which surely puts your SALT payments above $10K. Well, worry not, you aren't going to lose that deduction.

Some of you may recall Trump asserting that the GOP plan was going to "cost [him] a fortune, believe me, believe me." Notwithstanding that he's not identified specifically what provisions of it are going to cost him anything, much less a lot, one can be sure that the SALT provision isn't among those that will increase his tax liability.

FWIW, neither will dropping the pass-through marginal tax rate to 20%. Currently, people in Trump's assumed income bracket are subject to a marginal tax rate of 39.6%. Of course, one need not have anywhere near as apparently high a taxable income as Trump to be in the 39.6% bracket. Barely rich folks who have taxable incomes of $500K or so also are in that bracket.

Did you happen to catch the requirements for a single-member LLC or what is referred to as "Sole proprietorship LLC?" I've been far to busy to look into any of this.

 

[task0778]

Show me a link that shows how anybody gets around the $10,000 maximum deduction for SALT, property, or sales taxes paid in total. I could see it if you're running a business at home you might get away from the limit for the deduction limit on property tax but otherwise there's gotta be more to it.

 

[usmbguest5318]

There's been much talk from advocates of the State and local tax (SALT) limitation on tax deductibility. The current GOP plan limits the SALT itemized deduction to $10K. That seemingly denies some measure of the SALT deduction folks take for their million-dollar-plus homes.

Well, it doesn't really work out that that is the case. The GOP tax bill (post committee), based on what my tax planner/advisor tells me, has a tiny exception that results in a huge "no difference from before" loophole. The exception allows for the full deductibility (no ceiling) for SALT paid or accrued in carrying on a trade or a business ... [or on expenses related to] production of income.

• What does that mean? It means that if one earns one's income via an S-corp, partnership or sole proprietorship, one can deduct the entirety of SALT paid.
• To whom does that apply? It applies to a ton of people; pass-through entities are the most common form of business entity. If you are a partner in a firm, it applies to you. If you are a sole proprietor, it applies to you. If you are part owner in an S-corp, it applies to you. If you are like most such business owners, at the very least you live in a home and own business property for which the property taxes greatly exceed $10K/year. If you're doing fairly well, you own a second or third home, which surely puts your SALT payments above $10K. Well, worry not, you aren't going to lose that deduction.

Some of you may recall Trump asserting that the GOP plan was going to "cost [him] a fortune, believe me, believe me." Notwithstanding that he's not identified specifically what provisions of it are going to cost him anything, much less a lot, one can be sure that the SALT provision isn't among those that will increase his tax liability.

FWIW, neither will dropping the pass-through marginal tax rate to 20%. Currently, people in Trump's assumed income bracket are subject to a marginal tax rate of 39.6%. Of course, one need not have anywhere near as apparently high a taxable income as Trump to be in the 39.6% bracket. Barely rich folks who have taxable incomes of $500K or so also are in that bracket.

Did you happen to catch the requirements for a single-member LLC or what is referred to as "Sole proprietorship LLC?" I've been far to busy to look into any of this.

Did you happen to catch the requirements for a single-member LLC or what is referred to as "Sole proprietorship LLC?"

No, I did not see anything specifically mentioned regarding sole proprietorships whereby it differed from that which was noted for other forms of pass-through entities.


Aside:

"I'd like 'People Say the Strangest Things' for $200, Alex."
"Distinguished from others of its ilk, this form of business has only one owner who is indivisibly liable for all company deeds and issues no stock."
"What is a sole proprietorship, Alex?"

​

A sole proprietorship is not the same thing as a "one-person LLC."

​

 

[usmbguest5318]

Show me a link that shows how anybody gets around the $10,000 maximum deduction for SALT, property, or sales taxes paid in total. I could see it if you're running a business at home you might get away from the limit for the deduction limit on property tax but otherwise there's gotta be more to it.

Do you know any pass-through business owners who don't conduct their company's business from their home as well as from other locales? For any who do, that's all that's, along with having expensive-enough dwelling needed to evade the $10K limitation.

Perhaps what you're overlooking that for pass-through entity owners, the deduction is taken on Schedule C or Schedule E, not on Schedule A, the latter being where non-business-owners must take the SALT deduction? Schedule A deductions are "post-AGI" deductions, whereas Schedule C and E deductions are "pre-AGI" ones. All Schedule A deductions, AFAIK, have a floor or ceiling that limits the deductibility of whatever specific type of deduction one may there record, whereas, I'm not aware of any Schedule C or E deductions, other than the net operating loss deduction, that are limited.

Though I will next week meet with my tax advisor to learn more details, as things currently stand and as has been implied by my advisor, one can qualify one's residence for the 10K SALT exception under the "regular use" rule pertaining to the use of one's home for business purposes.

• Read this first --> Deducting Business Expenses | Internal Revenue Service
  
• Read this second --> Publication 587 (2016), Business Use of Your Home | Internal Revenue Service
  
• Then read this --> "regular use" qualification requirements

I've not yet been made aware of there being any change to the "regular use" rule; however, I'm sure that if that rule has changed, I'll next week find out about it having been changed.


As for your explicit request about the loophole pertaining to pass-through entity owners, I've only seen one mention of it on the Internet. That's not to say there are not others, but rather that I found one and stopped looking. (I don't generally look on the Internet for corroboration of information my tax advisor conveys; I trust that he knows what he's talking about.) I looked because I'm not willing to share here the additional details (specific phrasing) included in the letter I received from my tax advisor.


Then there is the matter of the "11th hour carve out" for Trump and his family and the small few others like him.

 

[yiostheoy]

I have not yet dove into the pass-thru provisions in the new tax act.

None of my clients is a pass-thru so not at the top of my list.

 

[yiostheoy]

Supposedly the cut in the tax rates is supposed to make up for the limits on the SALT deductions.

 

[usmbguest5318]

Supposedly the cut in the tax rates is supposed to make up for the limits on the SALT deductions.

Do any of your clients have children?

• If so, what has your detailed analysis of the termination of personal exemptions (~$4K/individual) in comparison to the increased standard deduction and child care credit revealed?
  • At what point do the increased standard deduction and changes to the child care credit cease to exceed the sums excludable from taxable income under the pre-GOP-bill tax code?

 

[yiostheoy]

Supposedly the cut in the tax rates is supposed to make up for the limits on the SALT deductions.

Do any of your clients have children?

• If so, what has your detailed analysis of the termination of personal exemptions (~$4K/individual) in comparison to the increased standard deduction and child care credit revealed?
  • At what point do the increased standard deduction and changes to the child care credit cease to exceed the sums excludable from taxable income under the pre-GOP-bill tax code?

You need to look at the whole tax picture.

Run it side by side under the old and new law.

You can't just cherry pick provisions that you like or don't like.

I like the SALT limitations.

And overall this is a huge tax cut for the rich who are the ones with the big SALT deductions, mostly property tax.

Calif and NYS will be pressured to drop their taxes too since the Feds will no longer subsidize them.

 

[Tax Man]

There is no subsidizing of taxes in California. The SALT deduction is to prevent tax monies paid from being taxed again as income.

 

[task0778]

Show me a link that shows how anybody gets around the $10,000 maximum deduction for SALT, property, or sales taxes paid in total. I could see it if you're running a business at home you might get away from the limit for the deduction limit on property tax but otherwise there's gotta be more to it.

Do you know any pass-through business owners who don't conduct their company's business from their home as well as from other locales? For any who do, that's all that's, along with having expensive-enough dwelling needed to evade the $10K limitation.

Perhaps what you're overlooking that for pass-through entity owners, the deduction is taken on Schedule C or Schedule E, not on Schedule A, the latter being where non-business-owners must take the SALT deduction? Schedule A deductions are "post-AGI" deductions, whereas Schedule C and E deductions are "pre-AGI" ones. All Schedule A deductions, AFAIK, have a floor or ceiling that limits the deductibility of whatever specific type of deduction one may there record, whereas, I'm not aware of any Schedule C or E deductions, other than the net operating loss deduction, that are limited.

Though I will next week meet with my tax advisor to learn more details, as things currently stand and as has been implied by my advisor, one can qualify one's residence for the 10K SALT exception under the "regular use" rule pertaining to the use of one's home for business purposes.

• Read this first --> Deducting Business Expenses | Internal Revenue Service
  
• Read this second --> Publication 587 (2016), Business Use of Your Home | Internal Revenue Service
  
• Then read this --> "regular use" qualification requirements

I've not yet been made aware of there being any change to the "regular use" rule; however, I'm sure that if that rule has changed, I'll next week find out about it having been changed.


As for your explicit request about the loophole pertaining to pass-through entity owners, I've only seen one mention of it on the Internet. That's not to say there are not others, but rather that I found one and stopped looking. (I don't generally look on the Internet for corroboration of information my tax advisor conveys; I trust that he knows what he's talking about.) I looked because I'm not willing to share here the additional details (specific phrasing) included in the letter I received from my tax advisor.


Then there is the matter of the "11th hour carve out" for Trump and his family and the small few others like him.

First of all, after 5 days of this new tax plan being out there, I have seen absolutely NOTHING from anybody on the web or in the media about any anybody who can avoid the $10,000 limit on the SALT deduction. I am not believing that the NYT, WaPo, HuffPo, and others have not identified this and pointed this out and bitched about it as a way for the rich guys to avoid the limit. I don't care what was in Trump's tax plan, I don't care what was in the House bill, and I don't care what the current IRS law is now before the tax bill goes into effect. All I care about is what is in the final tax bill that will be voted on the next few days, your tax advisor not withstanding. Ask him for where in the new tax bill he found where the exceptions are to get around that limit.


As for the 11th hour carve out, if I understand it right it's probably there more for people who have owned farms and ranches for generations. I highly doubt that the provision you refer to was done just for Trump as you imply. Nobody on either side is going to allow that, get real.

 

[usmbguest5318]

Supposedly the cut in the tax rates is supposed to make up for the limits on the SALT deductions.

Do any of your clients have children?

• If so, what has your detailed analysis of the termination of personal exemptions (~$4K/individual) in comparison to the increased standard deduction and child care credit revealed?
  • At what point do the increased standard deduction and changes to the child care credit cease to exceed the sums excludable from taxable income under the pre-GOP-bill tax code?

You need to look at the whole tax picture.

Run it side by side under the old and new law.

You can't just cherry pick provisions that you like or don't like.

I like the SALT limitations.

And overall this is a huge tax cut for the rich who are the ones with the big SALT deductions, mostly property tax.

Calif and NYS will be pressured to drop their taxes too since the Feds will no longer subsidize them.

Seriously? That's nebulous drivel is your response to a very specific question that is more than apropos to ask you...Either your clients (in their business capacity as your clients) have children or they don't. If they do, and you are a first-rate financial advisor, you'll have performed the analysis of which I asked because it's the most basic analysis that every such advisor can perform.

For individuals who did not itemize in 2017 and won't in 2018, the analysis is simple:

2017 Calculation:

AGI
Less: Standard deduction ($6,350 or $12,700)
Less: $4050 per household individual, dependent, or spouse (personal exemptions)
Less: Qualified child tax credit (the refundable $1K/kid CTC phases out in direct proportion to income)
Total 2017 federal income tax liability
​

2018 Calculation:

AGI
Less: Standard deduction ($12,200 or $24,400)
Less: Qualified child tax credit (click here for the new terms of the CTC)
Total 2018 federal income tax liability
​

To obtain a visual depiction, simply perform the calculations assuming the taxpayer qualifies for the full credit and full refundability (because people who don't are wealthier, though not at all wealthy) and graph the two 2017 equations and the two for 2018. Where the 2018 line crosses any given 2017 line is found the point whereafter the 2017 provisions result in a lower tax liability for filers to whom the given 2017 line applies and who, in determining their taxable income, are entitled to nothing more than the noted exclusions.

When comparing the financial impact of a tax provision, one must identify and evaluate the "apples to apples" provisions. In the case of the standard deduction and personal exemptions, they are the only provisions for which everyone potentially qualifies simply by dint of humans being within a given taxpayer's household.


FWIW, the two basic equations, absent the CTC component are:

• 2017
  • y = 4050x + 6350
  • y = 4050x + 12,700
• 2018
  • y = 12,200
  • y = 24,400

Insofar as you purport to be some sort of financial analyst (see quoted passage below), I'll leave you to derive the function for the CTC component. It's not hard, but it's the least you can contribute to this discussion given your remarks.

I have not yet dove into the pass-thru provisions in the new tax act. None of my clients is a pass-thru so not at the top of my list.

Are you any kind of tax/financial advisor, strategist, or planner? My advisor has performed that analysis, albeit with regard to the loss of the personal exemption and changes to itemized deduction provisions rather than with regard to the standard deduction. (I don't qualify for the CTC.) Obviously, one cannot perform an itemized-deduction-based analysis for anyone whose details one doesn't know.

 

[usmbguest5318]

Show me a link that shows how anybody gets around the $10,000 maximum deduction for SALT, property, or sales taxes paid in total. I could see it if you're running a business at home you might get away from the limit for the deduction limit on property tax but otherwise there's gotta be more to it.

Do you know any pass-through business owners who don't conduct their company's business from their home as well as from other locales? For any who do, that's all that's, along with having expensive-enough dwelling needed to evade the $10K limitation.

Perhaps what you're overlooking that for pass-through entity owners, the deduction is taken on Schedule C or Schedule E, not on Schedule A, the latter being where non-business-owners must take the SALT deduction? Schedule A deductions are "post-AGI" deductions, whereas Schedule C and E deductions are "pre-AGI" ones. All Schedule A deductions, AFAIK, have a floor or ceiling that limits the deductibility of whatever specific type of deduction one may there record, whereas, I'm not aware of any Schedule C or E deductions, other than the net operating loss deduction, that are limited.

Though I will next week meet with my tax advisor to learn more details, as things currently stand and as has been implied by my advisor, one can qualify one's residence for the 10K SALT exception under the "regular use" rule pertaining to the use of one's home for business purposes.

• Read this first --> Deducting Business Expenses | Internal Revenue Service
  
• Read this second --> Publication 587 (2016), Business Use of Your Home | Internal Revenue Service
  
• Then read this --> "regular use" qualification requirements

I've not yet been made aware of there being any change to the "regular use" rule; however, I'm sure that if that rule has changed, I'll next week find out about it having been changed.


As for your explicit request about the loophole pertaining to pass-through entity owners, I've only seen one mention of it on the Internet. That's not to say there are not others, but rather that I found one and stopped looking. (I don't generally look on the Internet for corroboration of information my tax advisor conveys; I trust that he knows what he's talking about.) I looked because I'm not willing to share here the additional details (specific phrasing) included in the letter I received from my tax advisor.


Then there is the matter of the "11th hour carve out" for Trump and his family and the small few others like him.

First of all, after 5 days of this new tax plan being out there, I have seen absolutely NOTHING from anybody on the web or in the media about any anybody who can avoid the $10,000 limit on the SALT deduction. I am not believing that the NYT, WaPo, HuffPo, and others have not identified this and pointed this out and bitched about it as a way for the rich guys to avoid the limit. I don't care what was in Trump's tax plan, I don't care what was in the House bill, and I don't care what it is now before the tax bill goes into effect. All I care about is what is in the final tax bill that will be voted on the next few days, your tax advisor not withstanding. Ask him for where in the new tax bill he found where the exceptions are to get around that limit.


As for the 11th hour carve out, if I understand it right it's probably there more for people who have owned farms and ranches for generations. I highly doubt that the provision you refer to was done just for Trump as you imply. Nobody on either side is going to allow that, get real.

First of all, after 5 days of this new tax plan being out there, I have seen absolutely NOTHING from anybody on the web or in the media about any anybody who can avoid the $10,000 limit on the SALT deduction.

??? I provided in the post to which you replied the link to the discussion of which I'm aware and that pertains to avoiding the SALT ceiling. What more do you expect me to do? (BTW, that question is rhetorical.) Were you to click on that link, you'd see what I've about it seen on the Internet.

 

[usmbguest5318]

Show me a link that shows how anybody gets around the $10,000 maximum deduction for SALT, property, or sales taxes paid in total. I could see it if you're running a business at home you might get away from the limit for the deduction limit on property tax but otherwise there's gotta be more to it.

Do you know any pass-through business owners who don't conduct their company's business from their home as well as from other locales? For any who do, that's all that's, along with having expensive-enough dwelling needed to evade the $10K limitation.

Perhaps what you're overlooking that for pass-through entity owners, the deduction is taken on Schedule C or Schedule E, not on Schedule A, the latter being where non-business-owners must take the SALT deduction? Schedule A deductions are "post-AGI" deductions, whereas Schedule C and E deductions are "pre-AGI" ones. All Schedule A deductions, AFAIK, have a floor or ceiling that limits the deductibility of whatever specific type of deduction one may there record, whereas, I'm not aware of any Schedule C or E deductions, other than the net operating loss deduction, that are limited.

Though I will next week meet with my tax advisor to learn more details, as things currently stand and as has been implied by my advisor, one can qualify one's residence for the 10K SALT exception under the "regular use" rule pertaining to the use of one's home for business purposes.

• Read this first --> Deducting Business Expenses | Internal Revenue Service
  
• Read this second --> Publication 587 (2016), Business Use of Your Home | Internal Revenue Service
  
• Then read this --> "regular use" qualification requirements

I've not yet been made aware of there being any change to the "regular use" rule; however, I'm sure that if that rule has changed, I'll next week find out about it having been changed.


As for your explicit request about the loophole pertaining to pass-through entity owners, I've only seen one mention of it on the Internet. That's not to say there are not others, but rather that I found one and stopped looking. (I don't generally look on the Internet for corroboration of information my tax advisor conveys; I trust that he knows what he's talking about.) I looked because I'm not willing to share here the additional details (specific phrasing) included in the letter I received from my tax advisor.


Then there is the matter of the "11th hour carve out" for Trump and his family and the small few others like him.

First of all, after 5 days of this new tax plan being out there, I have seen absolutely NOTHING from anybody on the web or in the media about any anybody who can avoid the $10,000 limit on the SALT deduction. I am not believing that the NYT, WaPo, HuffPo, and others have not identified this and pointed this out and bitched about it as a way for the rich guys to avoid the limit. I don't care what was in Trump's tax plan, I don't care what was in the House bill, and I don't care what the current IRS law is now before the tax bill goes into effect. All I care about is what is in the final tax bill that will be voted on the next few days, your tax advisor not withstanding. Ask him for where in the new tax bill he found where the exceptions are to get around that limit.


As for the 11th hour carve out, if I understand it right it's probably there more for people who have owned farms and ranches for generations. I highly doubt that the provision you refer to was done just for Trump as you imply. Nobody on either side is going to allow that, get real.

OT:

I don't care what was in Trump's tax plan, I don't care what was in the House bill, and I don't care what it is now before the tax bill goes into effect. All I care about is what is in the final tax bill that will be voted on the next few days, your tax advisor not withstanding.

While insouciance of the sort you attest to having is certainly your right to have, that sort of disinterestedness materially comprises why the middle class in the U.S. find themselves on the short end of the tax "stick."​

 

[task0778]

Show me a link that shows how anybody gets around the $10,000 maximum deduction for SALT, property, or sales taxes paid in total. I could see it if you're running a business at home you might get away from the limit for the deduction limit on property tax but otherwise there's gotta be more to it.

Do you know any pass-through business owners who don't conduct their company's business from their home as well as from other locales? For any who do, that's all that's, along with having expensive-enough dwelling needed to evade the $10K limitation.

Perhaps what you're overlooking that for pass-through entity owners, the deduction is taken on Schedule C or Schedule E, not on Schedule A, the latter being where non-business-owners must take the SALT deduction? Schedule A deductions are "post-AGI" deductions, whereas Schedule C and E deductions are "pre-AGI" ones. All Schedule A deductions, AFAIK, have a floor or ceiling that limits the deductibility of whatever specific type of deduction one may there record, whereas, I'm not aware of any Schedule C or E deductions, other than the net operating loss deduction, that are limited.

Though I will next week meet with my tax advisor to learn more details, as things currently stand and as has been implied by my advisor, one can qualify one's residence for the 10K SALT exception under the "regular use" rule pertaining to the use of one's home for business purposes.

• Read this first --> Deducting Business Expenses | Internal Revenue Service
  
• Read this second --> Publication 587 (2016), Business Use of Your Home | Internal Revenue Service
  
• Then read this --> "regular use" qualification requirements

I've not yet been made aware of there being any change to the "regular use" rule; however, I'm sure that if that rule has changed, I'll next week find out about it having been changed.


As for your explicit request about the loophole pertaining to pass-through entity owners, I've only seen one mention of it on the Internet. That's not to say there are not others, but rather that I found one and stopped looking. (I don't generally look on the Internet for corroboration of information my tax advisor conveys; I trust that he knows what he's talking about.) I looked because I'm not willing to share here the additional details (specific phrasing) included in the letter I received from my tax advisor.


Then there is the matter of the "11th hour carve out" for Trump and his family and the small few others like him.

First of all, after 5 days of this new tax plan being out there, I have seen absolutely NOTHING from anybody on the web or in the media about any anybody who can avoid the $10,000 limit on the SALT deduction. I am not believing that the NYT, WaPo, HuffPo, and others have not identified this and pointed this out and bitched about it as a way for the rich guys to avoid the limit. I don't care what was in Trump's tax plan, I don't care what was in the House bill, and I don't care what it is now before the tax bill goes into effect. All I care about is what is in the final tax bill that will be voted on the next few days, your tax advisor not withstanding. Ask him for where in the new tax bill he found where the exceptions are to get around that limit.


As for the 11th hour carve out, if I understand it right it's probably there more for people who have owned farms and ranches for generations. I highly doubt that the provision you refer to was done just for Trump as you imply. Nobody on either side is going to allow that, get real.

First of all, after 5 days of this new tax plan being out there, I have seen absolutely NOTHING from anybody on the web or in the media about any anybody who can avoid the $10,000 limit on the SALT deduction.

??? I provided in the post to which you replied the link to the discussion of which I'm aware and that pertains to avoiding the SALT ceiling. What more do you expect me to do? (BTW, that question is rhetorical.) Were you to click on that link, you'd see what I've about it seen on the Internet.

The only pertinent link (in November) I see from you refers to the House bill rather than the final bill and they ain't the same. To repeat: there is no mention anywhere that indicates that final tax bill allows anybody to avoid the $10,000 SALT deduction limit. NOTHING. There are numerous articles and columns about what's in that final bill, yet there is NOTHING, not even from the left-wing websites that says ANYTHING about any such loophole or exception.

 

[task0778]

Show me a link that shows how anybody gets around the $10,000 maximum deduction for SALT, property, or sales taxes paid in total. I could see it if you're running a business at home you might get away from the limit for the deduction limit on property tax but otherwise there's gotta be more to it.

Do you know any pass-through business owners who don't conduct their company's business from their home as well as from other locales? For any who do, that's all that's, along with having expensive-enough dwelling needed to evade the $10K limitation.

Perhaps what you're overlooking that for pass-through entity owners, the deduction is taken on Schedule C or Schedule E, not on Schedule A, the latter being where non-business-owners must take the SALT deduction? Schedule A deductions are "post-AGI" deductions, whereas Schedule C and E deductions are "pre-AGI" ones. All Schedule A deductions, AFAIK, have a floor or ceiling that limits the deductibility of whatever specific type of deduction one may there record, whereas, I'm not aware of any Schedule C or E deductions, other than the net operating loss deduction, that are limited.

Though I will next week meet with my tax advisor to learn more details, as things currently stand and as has been implied by my advisor, one can qualify one's residence for the 10K SALT exception under the "regular use" rule pertaining to the use of one's home for business purposes.

• Read this first --> Deducting Business Expenses | Internal Revenue Service
  
• Read this second --> Publication 587 (2016), Business Use of Your Home | Internal Revenue Service
  
• Then read this --> "regular use" qualification requirements

I've not yet been made aware of there being any change to the "regular use" rule; however, I'm sure that if that rule has changed, I'll next week find out about it having been changed.


As for your explicit request about the loophole pertaining to pass-through entity owners, I've only seen one mention of it on the Internet. That's not to say there are not others, but rather that I found one and stopped looking. (I don't generally look on the Internet for corroboration of information my tax advisor conveys; I trust that he knows what he's talking about.) I looked because I'm not willing to share here the additional details (specific phrasing) included in the letter I received from my tax advisor.


Then there is the matter of the "11th hour carve out" for Trump and his family and the small few others like him.

First of all, after 5 days of this new tax plan being out there, I have seen absolutely NOTHING from anybody on the web or in the media about any anybody who can avoid the $10,000 limit on the SALT deduction. I am not believing that the NYT, WaPo, HuffPo, and others have not identified this and pointed this out and bitched about it as a way for the rich guys to avoid the limit. I don't care what was in Trump's tax plan, I don't care what was in the House bill, and I don't care what the current IRS law is now before the tax bill goes into effect. All I care about is what is in the final tax bill that will be voted on the next few days, your tax advisor not withstanding. Ask him for where in the new tax bill he found where the exceptions are to get around that limit.


As for the 11th hour carve out, if I understand it right it's probably there more for people who have owned farms and ranches for generations. I highly doubt that the provision you refer to was done just for Trump as you imply. Nobody on either side is going to allow that, get real.

OT:

I don't care what was in Trump's tax plan, I don't care what was in the House bill, and I don't care what it is now before the tax bill goes into effect. All I care about is what is in the final tax bill that will be voted on the next few days, your tax advisor not withstanding.

While insouciance of the sort you attest to having is certainly your right to have, that sort of disinterestedness materially comprises why the middle class in the U.S. find themselves on the short end of the tax "stick."​

C'mon dude, who gives a crap about what was in Trump's plan or the House bill or the Senate bill? The only thing that matters is what is about to be signed into law if it passes through Congress in the next few days. You can blather all you want about anything else all you want but it means absolutely nothing. And BTW, the middle class are getting a bigger relative tax cut than the rich guys are.

 

[usmbguest5318]

Show me a link that shows how anybody gets around the $10,000 maximum deduction for SALT, property, or sales taxes paid in total. I could see it if you're running a business at home you might get away from the limit for the deduction limit on property tax but otherwise there's gotta be more to it.

Do you know any pass-through business owners who don't conduct their company's business from their home as well as from other locales? For any who do, that's all that's, along with having expensive-enough dwelling needed to evade the $10K limitation.

Perhaps what you're overlooking that for pass-through entity owners, the deduction is taken on Schedule C or Schedule E, not on Schedule A, the latter being where non-business-owners must take the SALT deduction? Schedule A deductions are "post-AGI" deductions, whereas Schedule C and E deductions are "pre-AGI" ones. All Schedule A deductions, AFAIK, have a floor or ceiling that limits the deductibility of whatever specific type of deduction one may there record, whereas, I'm not aware of any Schedule C or E deductions, other than the net operating loss deduction, that are limited.

Though I will next week meet with my tax advisor to learn more details, as things currently stand and as has been implied by my advisor, one can qualify one's residence for the 10K SALT exception under the "regular use" rule pertaining to the use of one's home for business purposes.

• Read this first --> Deducting Business Expenses | Internal Revenue Service
  
• Read this second --> Publication 587 (2016), Business Use of Your Home | Internal Revenue Service
  
• Then read this --> "regular use" qualification requirements

I've not yet been made aware of there being any change to the "regular use" rule; however, I'm sure that if that rule has changed, I'll next week find out about it having been changed.


As for your explicit request about the loophole pertaining to pass-through entity owners, I've only seen one mention of it on the Internet. That's not to say there are not others, but rather that I found one and stopped looking. (I don't generally look on the Internet for corroboration of information my tax advisor conveys; I trust that he knows what he's talking about.) I looked because I'm not willing to share here the additional details (specific phrasing) included in the letter I received from my tax advisor.


Then there is the matter of the "11th hour carve out" for Trump and his family and the small few others like him.

First of all, after 5 days of this new tax plan being out there, I have seen absolutely NOTHING from anybody on the web or in the media about any anybody who can avoid the $10,000 limit on the SALT deduction. I am not believing that the NYT, WaPo, HuffPo, and others have not identified this and pointed this out and bitched about it as a way for the rich guys to avoid the limit. I don't care what was in Trump's tax plan, I don't care what was in the House bill, and I don't care what the current IRS law is now before the tax bill goes into effect. All I care about is what is in the final tax bill that will be voted on the next few days, your tax advisor not withstanding. Ask him for where in the new tax bill he found where the exceptions are to get around that limit.


As for the 11th hour carve out, if I understand it right it's probably there more for people who have owned farms and ranches for generations. I highly doubt that the provision you refer to was done just for Trump as you imply. Nobody on either side is going to allow that, get real.

OT:

I don't care what was in Trump's tax plan, I don't care what was in the House bill, and I don't care what it is now before the tax bill goes into effect. All I care about is what is in the final tax bill that will be voted on the next few days, your tax advisor not withstanding.

While insouciance of the sort you attest to having is certainly your right to have, that sort of disinterestedness materially comprises why the middle class in the U.S. find themselves on the short end of the tax "stick."​

C'mon dude, who gives a crap about what was in Trump's plan or the House bill or the Senate bill? The only thing that matters is what is about to be signed into law if it passes through Congress in the next few days. You can blather all you want about anything else all you want but it means absolutely nothing. And BTW, the middle class are getting a bigger relative tax cut than the rich guys are.

You just keep thinking that....