High earners in high income states may have seen their tax bill increase significantly as a result of the SALT deduction caps introduced with the Tax Cuts & Job Act (TCJA).
Amy Sandlin joins Michael to discuss the workarounds that several states have implemented, and the complexities around these solutions.
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Episode Highlights
- Summary of the changes introduced by the Tax Cuts & Jobs Act.
- Example of the impact the limited SALT deduction can have on high earners.
- How states responded to the SALT cap, and how the exact rules in each state have varied.
- Quantitative example of one workaround, the Pass Through Entity Tax, in action.
- Outlook for the future of this deduction cap and the associated workarounds.
Episode Resources
Today’s Guest: Amy Sandlin, Blue & Co.
About The Tax Efficient Investor Podcast
On the Tax Efficient Investor podcast, we show you how to protect, grow, and transfer your wealth by implementing tax-advantaged investment strategies. Host Michael Johnston demystifies tax strategies that are favored by the most successful and sophisticated investors, including 1031 exchanges, IRA & 401k plans, HSA accounts, trusts, real estate, and more.
