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”
On Oct. 7, 2016, the New Jersey legislature approved a bill that would eliminate the New Jersey estate tax by 2018. The bill is the result of a compromise between Gov. Chris Christie and the state legislature to increase the state’s gas tax by 23 cents per gallon and slightly reduce the state sales tax. The bill is expected to be signed by Governor Christie in mid-October. [UPDATE: The governor signed the bill into law on October 14, 2016].
New Jersey currently has one of the most penalizing estate tax regimes in the country, with an exemption of only $675,000 and a top marginal rate of 16 percent. The new legislation would increase the exemption to $2 million on Jan. 1, 2017, and eliminate the tax entirely on Jan. 1, 2018.