SALT Parity - The S Corporation Association

Your State Could Be Costing You Millions

To mark the five-year anniversary of the Tax Cuts and Jobs Act, Tax Notes recently released a podcast reflecting on the 2017 bill, with a focus on how states have responded to its $10,000 cap on state and local tax (SALT) deductions. It’s a great reminder of how much the S Corporation Association has helped accomplish in that time, the billions of dollars being saved by businesses each year, and the confounding fact that a dozen states are still missing out on these benefits.

For those new to the issue, the SALT cap put S corporations and partnerships at a …

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admin2022-12-21T18:07:43+00:00December 20, 2022|

The $10 Billion Tax Cut No One’s Talking About

The Wall Street Journal’s Richard Rubin is out with a new piece that looks at our ongoing SALT Parity efforts, and the massive savings they’ve unlocked for hundreds of thousands of family businesses across the country.

Before getting to the good news, a quick primer for those new to the issue. The state and local tax (SALT) deduction cap imposed by the Tax Cuts and Jobs Act (TCJA) put S corporations and partnerships at a competitive disadvantage. C corporations could continue to fully deduct their SALT as a business expense while …

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admin2022-05-31T20:40:40+00:00May 31, 2022|

Virginia Unlocks Millions in SALT Parity Relief

With Tax Day just around the corner, we have some good news that should help ease the pain. Yesterday, Governor Glenn Youngkin signed HB 1121 into law, making Virginia the 25th state to adopt our SALT Parity reform. As a result, more than 200,000 Virginia S corporations and partnerships will have access to about $160 million in annual tax relief, starting with their 2021 returns.

As S-CORP readers know, the new cap on state and local tax (SALT) deductions does not apply evenly to all businesses. C corporations may continue to deduct the full value of their SALT as a …

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admin2022-04-12T17:11:09+00:00April 12, 2022|

SALT Parity Offers Massive Savings for Main Street

With the Build Back Better Act stalled in the Senate, states should resume efforts to enact our SALT Parity legislation this year. The SALT cap appears here to stay, at least through 2025, and the savings potentials for family businesses are substantial.

How substantial? As reported by Richard Rubin in the Wall Street Journal, new numbers out of New York show that that S corporations and partnerships paid $11 billion under the new Pass-Through Entity (PTE) tax the state adopted back in April, translating into between $3 and $4 billion in federal tax savings. $4 billion! That’s just one …

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admin2022-01-14T17:24:47+00:00January 14, 2022|

S-Corp Joins SALT Parity Panel Discussion

Last week, S-Corp President Brian Reardon joined a panel discussion on our SALT Parity efforts. Hosted by Tax Analysts, the webinar sought to explain why these laws are necessary, who benefits, and what effect current proposals in Congress might have on them.

For those new to the issue, the SALT deduction cap imposed by the Tax Cuts and Jobs Act put S corporations and partnerships at a competitive disadvantage – C corporations could continue to fully deduct their SALT as a business expense while pass-through business owners were subject …

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admin2021-12-13T22:01:00+00:00December 13, 2021|