The Charitable Contribution Strategy: An Ineffective SALT Substitute

37 Pages Posted: 7 Aug 2018 Last revised: 14 Oct 2018

Andy Grewal

University of Iowa - College of Law

Date Written: July 18, 2018

Abstract

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.

Suggested Citation

Grewal, Amandeep S., The Charitable Contribution Strategy: An Ineffective SALT Substitute (July 18, 2018). Virginia Tax Review, Vol. 38, No. 3, 2018. Available at SSRN: https://ssrn.com/abstract=3216189

Amandeep S. Grewal (Contact Author)

University of Iowa - College of Law ( email )

Melrose and Byington
Iowa City, IA 52242
United States

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