California’s legislature stalled on Thursday two bills to extend and modify an elective tax that gets around the $10,000 federal cap on state and local tax deductions.
The Assembly Appropriations Committee held the bills without comment, making it unlikely they will pass before lawmakers adjourn for the year on Aug. 31. The bills already passed the Senate.
- California’s workaround lets pass-through businesses like partnerships and S corporations elect to pay a 9.3% state tax on their income. Members of those entities then claim a credit on their personal income taxes equal to their share of the firm’s tax payment. ...
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