05.23.25
RIA Pass-Through Entities Lose SALT Cap Workaround in Tax Bill
by: Tracey Longo
President Trump's Big, Beautiful Bill, which has moved through the House, would increase the state and local tax (SALT) deduction cap to 40% but deny registered investment advisors (RIAs) the benefit of pass-through entity-level tax deductions that had previously allowed them to work around the SALT cap. The provision “targets partners in service-related and investment management partnerships, restricting their ability to leverage state laws — specifically pass-through entity tax provisions — to deduct state income taxes paid by partnerships,” Jeremy Naylor, a partner in the tax division at Proskauer, said in a new note to clients.
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