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A proposed regulation came out yesterday that effects charitable contributions which your state may also give a direct credit for. The regulation, if it goes into effect, will do so Monday.
https://s3.amazonaws.com/public-inspection.federalregister.gov/2018-18377.pdf
Yeah, it's all legalese and mostly mumbo jumbo to people who don't read this stuff for a living but the basics are that if your state gives a direct credit for certain charitable contributions [that is, if your contribution to a given charity directly reduces the amount of state tax you pay] you will now report that contribution as "other taxes" subject to the new state and local tax deduction limit.
This is, as of this moment, a proposed regulation and not carved in stone...until maybe Monday.
I don't know how many of you this would effect but I figured that it was important enough to pass along just in case.
-edit-
Here's an article that gives a little more perspective on exactly what this change means and does so in language humans can understand - https://www.cnbc.com/2018/08/24/taxpayers-scramble-as-proposed-irs-rule-on-local-taxes-cuts-workaround.html
https://s3.amazonaws.com/public-inspection.federalregister.gov/2018-18377.pdf
Yeah, it's all legalese and mostly mumbo jumbo to people who don't read this stuff for a living but the basics are that if your state gives a direct credit for certain charitable contributions [that is, if your contribution to a given charity directly reduces the amount of state tax you pay] you will now report that contribution as "other taxes" subject to the new state and local tax deduction limit.
This is, as of this moment, a proposed regulation and not carved in stone...until maybe Monday.
I don't know how many of you this would effect but I figured that it was important enough to pass along just in case.
-edit-
Here's an article that gives a little more perspective on exactly what this change means and does so in language humans can understand - https://www.cnbc.com/2018/08/24/taxpayers-scramble-as-proposed-irs-rule-on-local-taxes-cuts-workaround.html
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