Tax deductions

The service released its annual inflation adjustments Wednesday, including the standard deduction amount for individual and married taxpayers.

Middle-class households in New Jersey and other high-tax states would benefit from an expansion of the deduction, a key House Democrat said.

That Rothko, Basquiat or Banksy hanging in the front hall may be a great way to get a tax break.

The spending package could still include a measure to expand or temporarily remove the cap on the deduction on state and local taxes.

Democrats risk settling for a less generous expansion of the state and local tax deduction than previously hoped after President Joe Biden conceded that lawmakers will have to scale back his economic agenda to get it enacted.

High-earning taxpayers would face much smaller tax hikes — or even cuts — if Democrats decide to restore the federal deduction for state and local taxes in legislation that’s now moving through the House.

House Democrats are considering a two-year repeal as one of their potential paths to undoing the $10,000 cap on the federal deduction for state and local taxes.

The stumbling block is scrapping the deduction limit without losing progressives wary of a tax cut that would overwhelmingly benefit the wealthy.

The institute is asking Congress to expand the deduction to include accounting firms and other businesses excluded under the Tax Cuts and Jobs Act.

Most advisors don’t know about the tax benefit for qualified small business stock, which can put millions of dollars tax-free into an entrepreneur-client’s bank account.