Senate Revives SALT Workaround Used by Doctors, Lawyers (1)

The Senate GOP bill extending much of President Donald Trump’s 2017 tax law sets new limits on state strategies to bypass the $10,000 cap on state and local tax deductions, but also opens availability of such workaround strategies to a wider group of business taxpayers than the House bill does.

In a major deviation from the House approach, the Senate Finance Committee proposal drops language cutting professional service providers out of pass-through entity tax regimes, PTETs, found in many states. This distinction would ensure that millions of businesses providing accounting, legal, consulting, medical, and financial services can keep taking the ...