top of page

Personal Deductions For State Income Taxes And Property Taxes

If you have a California or Connecticut business set up as an LLC /S Corp, please read on.......

You all know by know that an individual's personal tax deductible limit for SALT (state income taxes and property taxes) is $10k. Biden's "Build Back Better" plan that's currently being negotiated in Congress tentatively calls from increasing the annual SALT limit to $80k. Big difference obviously and will have a significant savings on your taxes.

With that said, California's recently passed AB 150 provided a workaround to the current $10k annual limit, essentially allowing owners of LLC/S corps to taking larger deductions for SALT. And Connecticut had already passed a similar workaround a few years back. If Biden's $80k limit is enacted, it may make those LLC/S corp workarounds obsolete.

For now, I say let's wait and see how the $80k plays out. We all hope to have Biden's BBB plan resolved shortly. Then i can advise on whether electing the provisions of CA's AB 150 would be necessary.

If you have questions, please let me know.

10 views0 comments

Recent Posts

See All
bottom of page