Did the IRS Bless the Passthrough Entity Workaround to the $10K SALT Cap?
For three years, states and taxpayers have been looking for novel ways to get around the federal TCJA's $10,000 cap on deducting state and local taxes. The IRS just released Notice 2020-75, which appears to bless states' passthrough entity tax workaround regimes. But there is a lot more below the surface. There will be winners, losers, and continuing ambiguity. Matt Hunsaker breaks down the issues.