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Treasury Blocks State Charitable Deduction Workarounds to SALT Cap
Route Fifty: Finalized rules the U.S. Treasury Department issued Tuesday will prevent states from offering a workaround to the recently imposed $10,000 cap on the deduction taxpayers can claim on their federal tax returns for the state and local taxes they’ve paid.
After the 2017 tax revamp imposed the limit on the so-called SALT deduction, states including Connecticut, New Jersey and New York moved ahead with plans to give their residents ways to circumvent it by making “charitable contributions” to help pay for public services.
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