The 2018 changes in the federal tax laws were a mixed bag. One of the disadvantages for many tax payers was the new cap of $10,000 on federal deduction of state and local taxes. For many people this will mean a higher tax bill.
Any time there is a change in the tax law, there will be people looking for different ways to get around the cap. I always encourage clients to be cautious. Anything in the tax world that sounds too good to be true, almost certainly is. Some of the ways people have come up with to deal with the cap on deduction of state and local taxes look like they will work and others could land you in hot water. My friend Steve Hartnett, the Director of Education for the American Academy of Estate Planning Attorneys, recently commented on these approaches. You will find the link below.
- Is a Beneficiary Defective Inheritance Trust Right for My Business Succession Plan? - December 5, 2023
- Understanding Assisted Living in North Carolina - December 5, 2023
- 10 Estate Planning Tips to Help You Create a Successful Plan - July 11, 2023