Small business owners could avoid a new federal limit on state and local tax deductions after the Internal Revenue Service said Wednesday that rules it released last month to prevent efforts in California and other states to circumvent the cap apply only to individuals.
Businesses will be allowed to claim a full federal tax deduction for contributions to charities or government programs — particularly those offering school choice scholarships — that offer state tax credits, the IRS said.
The IRS’ Aug. 23 rules cracked down on that option for individual filers after some high-tax states moved to turn state and local tax payments into deductible charitable contributions so residents could avoid the $10,000 cap on state and local tax deductions in the Republican tax law that took effect Jan. 1.
The midterm election now just over eight weeks away is shaping up as a seismic collision between two powerful and competing forces, a rip-roaring national economy and a deeply polarizing and unpopular president.
President Trump sought to blunt the impact of a forthcoming book by longtime Washington journalist Bob Woodward, calling it possibly “made up” or the product of embittered aides, after a number of sensational excerpts emerged on Tuesday.
The Senate confirmation hearings for Judge Brett Kavanaugh started off contentiously Tuesday and will probably continue to gain steam Wednesday, with the first bout of public questioning of President Trump’s Supreme Court pick.
Democrats made clear Tuesday that the confirmation hearing for Brett Kavanaugh, President Trump’s Supreme Court nominee, will not go quickly or smoothly, though the chances of blocking his appointment in the GOP-led Senate remain slim.
Three-quarters of Americans want to preserve key protections in the Affordable Care Act that bar health insurers from turning away sick customers, according to a new poll that highlights the political pitfalls of current Republican efforts to roll back the safeguards.