To make up for budget deficits and prevent future shortages, state and local governments enact their own tax requirements, resulting in thousands of laws. For example, some homeowners are required to pay a residential tax just for residing in a specific municipality, whereas that tax may not exist in neighboring towns. You would be penalized by your jurisdiction if you did not pay that required tax. On the flip side, if you itemize your deductions and did pay the tax, you may be eligible for a SALT deduction.

The Tax Cuts and Jobs Act of 2017 capped SALT deductions at $10,000 dollars through 2025. After that, 100% of state and local taxes will be deductible unless other legislation is passed to change that. SALT deductions reduce federal tax liability, and for individuals living in or doing business in states with high SALT taxes, the reduction in federal taxes can be massive.

This is one example among many in the ever-changing landscape of state and local taxes. Keeping up with these changes year to year can be a massive headache and distract you from those things that matter most to you.

Our team is well-versed in sales tax nexus and stays updated on each state’s unique requirements to ensure you’re compliant and take full advantage of the tax situation in your state or local municipality, especially those impacting our clients in the Chaddsford and Media communities.

Services provided:

• Business growth 
• Buying and selling company property
• Property tax 
• Sales tax 
• Credits and incentives 
• Income and franchise tax
• Unclaimed property
• Indirect tax