In the Tax Cuts and Jobs Act of 2017, Congress placed a $10,000 limit on the amount of state and local taxes (SALT), such as income and property taxes, that any individual or family can deduct from their federal taxable income. The 2017 limits did not apply to business entity-level taxes. As Congress assembles the tax package to extend and improve the 2017 tax cuts, it should include new reforms that raise revenue to offset the proposed tax cuts. One reform being considered is limiting corporate state and local tax (C‑SALT) deductions by extending the limits placed on individuals to businesses.
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Adam N. Michel
In the Tax Cuts and Jobs Act of 2017, Congress placed a $10,000 limit on the amount of state and local taxes (SALT), such as income and property taxes, that any individual or family can deduct from their federal taxable income. The 2017 limits did not apply to business entity-level taxes, such as the corporate income tax.
