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California’s SALT Work-Around Bill Could Reduce Certain Business Owners’ Tax Burden

BPM’s Elaine Leung and Bob McGrath featured in Financial Advisor Magazine 08.11.21

In July, California Governor Gavin Newsom signed the much-anticipated Assembly Bill 150, better known as the state’s “SALT workaround.” One of nearly 20 other states that has passed a SALT workaround thus far, the bill is a response to the Tax Cuts and Jobs Act of 2017, which capped the amount of taxes paid to states that pass-through entities can deduct on their federal return to $10,000 per year. As BPM Tax Directors Elaine Leung and Bob McGrath explain, by allowing eligible pass-through entities (i.e., S corporations, partnerships and LLCs taxed as partnerships) to elect to pay state taxes at the entity level, rather than individual level, certain owners may benefit significantly from this new bill. Read the article from Financial Advisor Magazine now for more details on the bill, or contact Elaine or Bob today to learn how BPM can help you make the optimal tax planning decisions for your unique situation.