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Virginia SALT Cap Fix Gives Extra Time to Opt Into Workaround

April 14, 2022, 5:25 PM

Virginia partnerships and other pass-through businesses will have an extended period to decide whether to take advantage for 2021 of the state’s new device for cushioning the $10,000 federal cap on individual deductions for state and local taxes.

Because the cap workaround passed so late in this year’s tax season, it allows the businesses to file their 2021 returns without deciding to pay the new pass-through entity tax, which Gov. Glenn Youngkin (R) signed into law April 11. Owners of the businesses would have to wait until after the business makes its choice in order to determine whether they can ...