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AICPA position paper on state pass-through entity-level ...

1 state pass-through entity-level TAX IMPLEMENTATION ISSUES BACKGROUND One of the provisions of the 2017 federal tax reform (Pub. Law No. 115-97, commonly referred to as the Tax Cuts and Jobs Act (TCJA)) was a limit on the amount of state and local taxes an individual can deduct for regular federal income tax purposes. Congress amended section 164 by imposing a $10,000 limit for most individuals and married couples filing a joint return and a $5,000 limit on married individuals filing There were no changes to the provision in section 164 that allows for the deduction for taxes paid in connection with a trade or business that are imposed on the business There were also no additional limitations placed on the deductibility of charitable contributions under section 170, but section 170 was The TCJA legislative hi

income taxes. States may levy a second layer of income tax if all the individual-level state income tax credits are not equal to all of the entity-level state income tax paid. To avoid double taxation, all states would need to provide a full credit to …

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Transcription of AICPA position paper on state pass-through entity-level ...

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