In 2017, approximately 81% of all businesses in the US were organized as pass-through entities, with S-corporations (“S-corps”) and Limited Liability Companies (“LLCs”) comprising approximately 68% of all businesses. 1 The passage of the Tax Cuts and Jobs Act (“TCJA”) on December 22, 2017, presented many changes for pass-through entities to consider when determining the most…
Tag: Tax Planning
The Consequences of Eliminating State and Local Tax Deductions: Double Taxation and Tax Controversy
The Trump Administration recently passed a comprehensive tax reform package, which includes restrictions on state and local tax (“SALT”) deductions from federal income returns.1 For the fiscal year 2017, the Internal Revenue Code permits deductions for state, local, and foreign taxes relating to income and property taxes.2 Proponents argue that restriction of the deduction will…