task0778
Diamond Member
You just keep thinking that....OT: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.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.
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.
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.
- 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
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.
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.
And you can keep on making stuff up and spewing the dem party line.