275  7TH Ave  7th floor New York , NY 10001                                                                                                                dcullinanecpa@yahoo.com

​                                                                                                                                                                                                     Chelsea / Lower Manhattan​​

​Daniel Cullinane CPA                                   p 848-250-9587                                                                                                                                     

INCOME TAX PREPARATION

​TAX WORKAROUND



Treasury Department tax experts are skeptical about states allowing taxpayers to make charitable contributions to circumvent a new cap on deductions for state and local taxes. The comments from Thomas West, the tax legislative counsel serve as a warning to lawmakers in New York, New Jersey, and California who are considering encouraging such donations with new state tax breaks. The department is monitoring what states are doing and may issue a more formal notice if warranted to protect federal tax revenues. Treasury Secretary Steven Munchin also previously called such ideas ridiculous. Lawmakers in high tax states are  considering ways of responding to the new tax law which limits  the individual deduction for state and local taxes to $10,000.

One option being considered in some states would take advantage of the fact that charitable  contributions remain deductible against federal income taxes. States could set up funds and then give taxpayers credit against their state and local or property taxes for donations.

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