IRS issues notice on state and local tax deductions

IR-2018-122, May 23, 2018

IR-2018-122, May 23, 2018

WASHINGTON — The U.S. Department of the Treasury and the Internal Revenue Service issued a notice today stating that proposed will be issued addressing the deductibility of state and local tax payments for fedel income tax purposes. Notice 2018-54  also informs taayers that fedel law controls the chacterization of the payments for fedel income tax purposes regardless of the chacterization of the payments under state law.

WASHINGTON — The U.S. Department of the Treasury and the Internal Revenue Service issued a notice today stating that proposed will be issued addressing the deductibility of state and local tax payments for fedel income tax purposes. Notice 2018-54  also informs taayers that fedel law controls the chacterization of the payments for fedel income tax purposes regardless of the chacterization of the payments under state law.

The Tax Cuts and Act (TCJA) limited the amount of state and local ts an individual can deduct in a calendar year to $10,000. In response to this new limitation, some state legislatures have adopted or are considering legislative proposals allowing taayers to make payments to specified entities in exchange for a tax edit against state and local ts owed.

The Tax Cuts and Act (TCJA) limited the amount of state and local ts an individual can deduct in a calendar year to $10,000. In response to this new limitation, some state legislatures have adopted or are considering legislative proposals allowing taayers to make payments to specified entities in exchange for a tax edit against state and local ts owed.

The upcoming proposed , to be issued in the near future, will help taayers understand the relationship between fedel charitable contribon deductions and the new statutory limitation on the deduction of state and local ts.

The upcoming proposed , to be issued in the near future, will help taayers understand the relationship between fedel charitable contribon deductions and the new statutory limitation on the deduction of state and local ts.

Taayers should also be aware the U.S. Department of the Treasury and the Internal Revenue Service are continuing to monitor other legislative proposals being considered to ensure that fedel law controls the chacterization of deductions for fedel income tax filings.

Taayers should also be aware the U.S. Department of the Treasury and the Internal Revenue Service are continuing to monitor other legislative proposals being considered to ensure that fedel law controls the chacterization of deductions for fedel income tax filings.

The limitation imposed by the TCJA lies to taxable years beginning after Dec. 31, 2017 and before Jan. 1, 2026.

The limitation imposed by the TCJA lies to taxable years beginning after Dec. 31, 2017 and before Jan. 1, 2026.

Updates on the implementation of the TCJA can be found on the Tax Reform page of IRS.gov.

Updates on the implementation of the TCJA can be found on the Tax Reform page of IRS.gov.


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