LOHUD: Tax Watch columnist David McKay Wilson reports on the IRS ruling on the deductibility of state and local taxes. The IRS on Tuesday squashed attempts by New York and New Jersey to circumvent the federal cap on the deductibility of state and local taxes, issuing final regulations that bar governments from giving substantial tax credits in exchange for charitable contributions. MORE AT https://www.lohud.com/story/money/personal-finance/taxes/david-mckay-wilson/2019/06/11/salt-tax-cap-deductions-nixed/1426013001/
When I first mentioned this to my accountant, he just smiled and said, "uh, no", and I believed him.ReplyDelete
Seems strange that you seem to have more of an issue with the state lawmakers that are trying to figure out ways to help its constituents -- and figure out a "work around" -- than the federal lawmakers that actually passed this law and created the issue in the first place.ReplyDelete
Not at all. But when residents are--and were--offered a clearly ludicrous solution that was never any solution at all, well, that's a problem. Local accountants and other financial professionals issued--as always--warnings that were, again as always, ignored. That's a problem too. Fortunately most people knew enough to avoid this scheme/workaround. Those that didn't are suffering the consequences of very bad advice. It's a fair bet that most of the officials offering this bad advice most likely did not take advantage of this "workaround" themselves.Delete
Thank you. In the real world, you don't get a trophy simply for making a suggestion. It has to actually be a good suggestion.Delete
In case anyone has forgottenReplyDelete
TAX SCHEME PLACES RESIDENTS AT RISK, A MUST-READ LETTER
“When our state and local officials encourage residents to break the law to make a political statement, that is not acceptable.”
The following letter was published in this week’s issue of the Gazette.
To the Editor:
Political activism is an American tradition as old as the founding of our nation. But there is a big difference between personal activism and a municipal corporation engaging in activism which places its residents at risk.
When our Village trustees pass activist resolutions and send letters of protest to Albany or Washington, such action is harmless, albeit ineffectual. When we participate in a “Hey hey, ho ho, [insert cause] has got to go” march, we are getting some exercise and our neighbors are no worse off.
But when our state and local officials encourage residents to break the law to make a political statement, that is not acceptable.
COPY AND PASTE THIS SO YOU CAN READ THE REST OF THIS. I HOPE NO ONE WAS FOOLISH ENOUGH TO TAKE THIS ADVICE http://www.crotonunited.org/news-views/2018/5/24/tax-scheme-places-residents-at-risk