Businesses and Business Owners: 

There are new regulations regarding deductions for certain state and local income taxes.

On November 9, 2020, the The U.S. Department of the Treasury  issued a press release discussing the Treasury and the IRS’s proposed regulations “… clarifying that businesses structured as pass through entities may deduct certain state and local income taxes similar to C corporations.”  These regulations “provide certainty to individual owners of partnerships and S corporations in calculating their SALT deduction limitations.”

Read the press release and Notice 2020-75.