Nov. 30, 2021: Tax Planning Opportunities with the Increased State Tax Deduction Cap

Federal tax legislation in 2017 limited the deductibility of state and local taxes for individuals to $10,000 per year–but subsequent IRS guidance and changes in state laws have provide an opportunity for taxpayers to select an alternative tax regime for savings. In this week’s Tax Credit Tuesday podcast, Michael Novogradac, CPA, Novogradac partner Tom Boman, CPA and Novogradac principal Reza Karim, CPA, discuss the options available to taxpayers. They present an overview of IRS Notice 2020-75, examine approaches by different states, show how those approaches work, explain how taxpayers qualify for options and look at other issues connected to state and local taxes.