The Tax Cuts and Jobs Act Taketh Away … the IRS Regulations Give Back…        

Many business owners are anxiously awaiting the proposed regulations regarding the types of State and local income taxes paid by a partnership or S corporation that may be deducted without the $10,000 limitation ($5,000 for individuals or married individuals filing a separate return) imposed by the Tax Cuts and Jobs Act of 2017.  Since these payments are made by a partnership or S corporation, they are not subject to the State and local tax deduction limitation for partners and shareholders who itemize deductions.  The proposed regulations will apply to tax payments made on or after November 9, 2020, and some rules will apply to payments made in a table year of a partnership or S corporation ending after December 31, 2017 and before November 9, 2020.  For more information and links to the complete IRS Notices, click here.