You May Be Able to Delay SALT Expenses Until 2021

The Tax Cuts and Jobs Act, enacted in December 2017, limited the itemized deduction for state and local taxes (“SALT”) to $10,000 per tax filer (or $5,000 for a married person filing separately). Although this provision is scheduled to sunset after 2025, there is a reasonable possibility that this limitation may be lifted as soon as next year, as part of a comprehensive revision of the income tax code, depending on the outcome of the upcoming elections. Continue reading “You May Be Able to Delay SALT Expenses Until 2021”

Charitable Contributions Under the CARES Act

On March 27, 2020, the bipartisan Coronavirus Aid, Relief, and Economic Security (CARES) Act was signed into law. In order to encourage charitable contributions at this unprecedented time, the CARES Act made some valuable changes to the way those contributions are treated on your tax return. The first change worth highlighting is the treatment of charitable contributions up to $300 as an above the line deduction for the 2020 tax year (possibly $600 for a married couple). If you do not itemize your deductions, you are eligible to take this charitable deduction. Additionally, if you itemize your deductions and make a charitable contribution of cash directly to a public charity, you are not limited to 60% of your adjusted gross income (AGI) for 2020, but instead may deduct up to 100% of your AGI for this year. Continue reading “Charitable Contributions Under the CARES Act”