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N.Y. SALT Cap Fix Tucked Into Budget Delivers Broader Tax Break

Anchin’s Alan Goldenberg spoke with Bloomberg Tax about technical fixes to the SALT cap workaround passed last year, which will allow more New York residents to receive the full benefits of this potentially lucrative tax break.

Tax changes would apply starting in tax year 2022. However, the deadline for firms to elect for the pass-through entity tax for this year closed on March 15.

“We have so many S corporations, in particular, single one-shareholder S corporations that chose to pass on it because maybe they didn’t have a high enough allocation— it just wasn’t worthwhile for them,” said Alan Goldenberg, a state and local tax principal at Anchin, Block & Anchin LLP. “But now they could be getting substantial benefit. It’d be nice if they could elect in.”

A spokesman for the New York Department of Taxation and Finance did not immediately respond to a request for comment on whether the agency is considering extending the deadline following the tax law changes.


Read the full article from Bloomberg Tax