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New York, Connecticut Taxpayers Have Plan B Options to Beat SALT

Aug. 27, 2018, 12:23 PM

Taxpayers in New York and Connecticut still have a few potential options to avoid the hit from a new cap on state and local tax deductions, while residents of other high-tax jurisdictions may only have creative estate planning as a last resort.

The Internal Revenue Service focused its proposed regulations last week on blocking the charitable programs approved by some high-tax states to skirt the $10,000 federal limit on so-called SALT deductions. It remained silent on other workarounds some states have in place to get around the cap.

The most popular mechanism to avoid the limit had been to allow ...