A New Jersey SALT tax workaround was recently signed into law, but will it work? Many New Jersey residents who own businesses in the State are following the issue closely to see if the 2017 state and local tax federal tax deduction limitations can be mitigated. Time will tell, and New Jersey’s tax structure is ripe for overall reform. Whether the recent New Jersey SALT Tax workaround will stick is to be determined.
“There are few discussions with more wide-rippling impact than the one money managers have with clients about whether a move to a lower-tax state is the best decision. Ralph Thomas, executive director and CEO of the New Jersey Society of Certified Public Accountants, thinks the state may have just found a way to reliably insert itself into that conversation. That’s why he was “waiting with bated breath” for an answer regarding the fate of the Pass-Through Business Alternative Income Tax Act, which gives small businesses in the Garden State a way to overcome the cap put on state and local tax, or SALT, deductions in 2017’s federal tax overhaul. Thomas got his answer when Gov. Phil Murphy signed the bill…”