Vlahos Comments on New York SALT Cap Workaround
August 26, 2021 |Louis Vlahos was quoted in the Bloomberg Tax article, “New York SALT Cap Workaround Sets Stage for Delayed Refunds.”
New York has issued new guidance on how to get around the $10,000 federal cap on state and local tax deductions, but it isn’t offering some taxpayers the reprieve they were hoping for.
Pass-through entity partners and shareholders who opt in to start paying the new tax in 2021 will still be required to pay their estimated income taxes this year as if their businesses were not opting in.
Vlahos called the delay “nuts” and stated, “In other words the taxpayer ends up paying tax on the same income two times before receiving any benefit, once in estimated taxes and again via the entity-level tax.”
