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Governor Takes Steps to Address SALT Deduction Cap – Tax & Accounting Blog

Governor Dannel P. Malloy’s FY19 budget adjustment proposals include steps to address:

-the $10,000 cap beginning in 2018 on the federal itemized deduction individuals may claim for state and local income, sales, and property tax payments (SALT deduction);

-the 100% bonus depreciation deduction for property placed in service after September 27, 2017; and

-the increase in the IRC Sec. 179 asset expense deduction.

The governor proposes to:

-establish a property tax credit for contributions by individuals to new municipal charitable foundations that support local services; and

-decouple from the federal asset expense deduction.

In addition, individuals would no longer be allowed to claim federal bonus depreciation on their Connecticut income tax returns. Corporation business taxpayers cannot claim federal bonus depreciation under current Connecticut law.

Subscribers can view the governor’s press release on his proposals.

Press Release
Press Release, Office of Connecticut Gov. Dannel P. Malloy, February 6, 2018

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Author: CCHTaxGroup

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