Wills, Trusts & Estates Prof Blog

Editor: Gerry W. Beyer
Texas Tech Univ. School of Law

Wednesday, January 24, 2018

Article on Getting Around the State and Local Tax Deduction Limit

image from https://s3.amazonaws.com/feather-client-files-aviary-prod-us-east-1/2018-01-24/d169cde4-2a32-4a67-ab6e-be13afca328c.pngEric Bennett Rasmusen recently posted an Article entitled, Getting Around the State and Local Tax Deduction Limit, Tax Law: Tax Law & Policy eJournal (2018). Provided below is an abstract of the Article:

The 2017 tax bill put a cap of $10,000 on the deduction for state and local taxes, while retaining existing rules for charitable donations. It has been suggested that states could enact 100% state tax credits for people who donate money to the state, so taxpayers could donate instead of pay taxes and thus still be able to deduct as much as they want on their federal tax returns. I disagree, and argue that under the past and present Tax Code these "donations" would and should be treated as quid pro quo items, since the recipient transfers something of value to the donor.


Articles, Estate Planning - Generally, Income Tax | Permalink


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