IRS Proposes Rules on Charitable Contributions Tied to SALT Cap

The IRS released proposed rules Dec. 13 tied to its efforts to curb state attempts to skirt the $10,000 cap on state and local tax deductions.

The SALT limit has rankled lawmakers in high-tax states since it was created in the 2017 tax law.

• The rules (REG-107431-19) codify earlier guidance (Rev. Proc. 2019-12) that gave businesses a safe harbor for use of a charitable entity described in tax code Section 170.
• The White House’s regulatory review office finished its consideration of the rules on Dec. 4.
• In June the agency released final rules (T.D. ...