The IRS has proposed clarifications on how to treat certain contributions made to a charity in return for state and local tax credits. A provision of the Tax Cuts and Jobs Act limits an individual’s deduction for state and local taxes paid in a calendar year to $10,000. The new proposed regulations provide guidance on issues that remain unclear despite previous direction. They include: 1) treatment of business entity payments to certain entities, 2) treatment of payments by individuals with total state and local tax liabilities that were less than or equal to the U.S. tax code limitation and 3) application of the quid pro quo principle. Read the proposed regs: http://bit.ly/36zoFlI Call or visit our website for more information!www.mjscpa.com/
