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IRS Proposes Rules on Charitable Contributions Tied to SALT Cap

Dec. 13, 2019, 9:46 PM

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. 9864) aimed at state-created charitable funds used as workarounds of the cap.

To contact the reporter on this story: Sam McQuillan in Washington at smcquillan@bloomberglaw.com

To contact the editors responsible for this story: Patrick Ambrosio at pambrosio@bloombergtax.com; Colleen Murphy at cmurphy@bloombergtax.com

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