Tuesday, February 12, 2019
Andy Grewal (Iowa) presents The Charitable Contribution Strategy: An Ineffective SALT Substitute, 38 Va. Tax Rev. 203 (2018), at Georgetown today as part of its Tax Law and Public Finance Workshop Series hosted by John Brooks and Lilian Faulhaber:
Various states have proposed or enacted laws designed to circumvent the new $10,000 federal limit on state and local tax deductions. The new laws generally contemplate that taxpayers will substitute their tax payments with charitable contributions to state-controlled funds. This Article explores whether that strategy works and concludes that it does not.
It also considers the IRS’s recent notice on the strategy and offers recommendations on how to best draft regulations.