Bruce Ely Quoted in Bloomberg Tax on GOP Win Signaling Changes to SALT Cap and State Workarounds
November, 2024 - Birmingham, Alabama
Bradley attorney Bruce Ely was quoted in Bloomberg Tax on the likelihood of the recent GOP win signaling changes to the SALT (state and local tax deductions) cap and state workarounds.
“Few of us expect the SALT cap to be totally eliminated – that would cost over $1 trillion over 10 years. But most of us expect an increase in the cap, maybe to $25,000 for joint filers. President Trump came out in September and promised to repeal the SALT cap, but I think that's a bridge too far,” said Ely.
“The purpose and value of state PTET [pass-through entity tax] programs would diminish for many taxpayers if the cap is raised or eliminated. Many taxpayers, however, would continue to file their returns at the entity level for the sake of simplicity,” Ely explained.
“I think most pass-through entity owners that elected it, would keep it,” he said. “They use it as a way to simplify their lives. Essentially, this is a change in taxpayer behavior, so they don't mind treating their pass-through as a C corp for state tax purposes because this is really all about the federal tax,” Ely concluded.
The full article, “GOP Wins Signal Changes to SALT Cap and to State Workarounds,” was published by Bloomberg Tax on November 12, 2024.
