California Salt Tax. The next chapter in Californias fight against the Tax Cuts and Jobs Act TCJA began on January 5 2021 with the introduction of California Senate Bill 104 SB 104 in the state legislature. The State of Californias Assembly Bill 150 has allowed a so-called workaround for taxpayers USD10000 limitation on state and local tax SALT deductions on their federal income tax returns.
California business owners have been given a workaround to the 10000 State and Local Tax SALT itemized deduction limit imposed by the 2017 tax reform that adopted elective pass-through entity PTE tax legislation. For tax years beginning on or after Jan. The California Franchise Tax Board reported that in the 2018 tax year the SALT cap cost Californians 12 billion.
Californias SALT workaround for pass-through entities will be an elective tax that the entity pays on behalf of partners.
California joins at least 15 states that have enacted SALT cap workarounds since passage of the 2017 federal tax overhaul. Tuesday 03 August 2021. The governors office did not immediately respond to a request for additional comment. The State of Californias Assembly Bill 150 has allowed a so-called workaround for taxpayers USD10000 limitation on state and local tax SALT deductions on their federal income tax returns.
