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.

This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.

To view this content, please continue to their sites.

Not a Lexis Subscriber?
Subscribe Now

Not a Bloomberg Law Subscriber?
Subscribe Now

Why am I seeing this?

LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.

For questions call 1-877-256-2472 or contact us at [email protected]