Beat the Unfair $10,000 SALT Cap with a C Corporation

Do run a profitable S corporation?

Then you know that before the Tax Cuts and Jobs Act (TCJA) became law, you could deduct foreign, state, and local taxes (SALT) on your Form 1040 Schedule A without limit!

Well, the TCJA changed all that. Now, it caps those deductions at $10,000.

What can you do to avoid some of this government picking your pocket with the TCJA?

Well, it’s entirely possible that by switching to C corporation status you can bypass the SALT deduction cap. This leaves more money in your pocket.

Want to find out why running your business as a C corporation can make a lot of sense? All will be explained when you read my new article titled Tax Tips: Beat the Unfair $10,000 SALT Cap with a C Corporation.

Three ways our fact-filled article can help you:

1. We’ll explain C corporation loophole basics. The $10,000 deduction-limit only applies to individuals who claim deductions on their Form 1040, Schedule A. The unfair limit does not apply to C corporations. You’ll learn more about how the loophole can save you money when you read the full article.
2. We’ll “run the numbers” for you. We want you to see how C corporations play out in real life. So we’ll provide two examples that will make everything crystal clear. Let’s get our hands dirty and take a close look at how two different real-world scenarios play out when you read the full article.
3. We’ll tell you how to make an important decision. Does becoming a C corporation make a lot of sense for you? Not necessarily. We agree that for many small-business owners, the S corporation does make a lot of sense. Why? Because of the taxes you’d pay on the dividends generated by a C corporation. So how do you decide if C corporation status is right for you? We’ll give you seven questions to ask yourself before you make a decision. All will be explained when you read the full article.