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.