Latest SALT Deduction Proposal

[BobKamman]

Most of the time it’s wasted effort to follow proposed legislation until it is signed into law, but this one could make a big difference in year-end tax planning and fourth-quarter estimates. Many Washington observers think this provision, or something similar, has a better-than-average chance to become law. In the latest draft of the Better Business Bureau bill (or whatever BBB stands for), the deduction for state and local taxes would be capped at $72,500 instead of the $10,000 in current law. And, the effective date would include 2021 returns. There is no upper AGI limit.

Meanwhile, two items from the Ways & Means curiosity shop that are gnats on the tax law beast: Starting in 2022, an above-the-line deduction of up to $250 would be allowed for union dues, and another $250 above-the-line deduction for work uniforms.

Source (2,135-page pdf):

https://rules.house.gov/sites/democrats.rules.house.gov/files/BILLS-117HR5376RH-RCP117-18.pdf

[qbteachmt]

"(or whatever BBB stands for)"

Oh, let me help you with that: Build Back Better.

[BobKamman]

As Maureen Dowd writes in today's column, "Democrats have to come up with a vocabulary and a vision to elucidate how the Bipartisan Infrastructure Framework and Build Back Better will benefit people. B.I.F. sounds like Willy Loman’s son, and must we ask, to B.B.B. or not to B.B.B.?"

[BobKamman]

Meanwhile, the infrastructure bill that has passed Congress and is awaiting signature makes some changes to cryptocurrency reporting rules and definitions.  The 1099 rules don't start until 2023 returns.  There is a summary of it here:

https://www.voltequity.com/post/new-crypto-tax-reporting-requirements-in-the-2021-infrastructure-bil... 

[sjrcpa]

The SALT cap has been amended to $80,000.

BILLS-117HR5376-RCP117-19.pdf (house.gov)