Law firm partners in some high-tax states could save a lot of money in income taxes now that the IRS has approved a work-around for the federal deduction cap on state and local tax payments.
The work-around allows individuals to capture federal income tax deductions beyond the $10,000 cap on state and local tax (SALT) payments that took effect in 2018. While it has the potential to benefit law firm partners who pay high SALT taxes, the complexities will likely limit how many large firms can use it.
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