Turn New Tax Cut Law Lemons into Lemonade

The newly enacted Tax Cuts and Jobs Act smacked down the annual deductions allowed for state and local taxes paid.

DOT/IRS Notice 2018-54 states the following:

Section 11042 of “The Tax Cuts and Jobs Act,” Pub. L. No. 115-97, limits an individual’s deduction under § 164 for the aggregate amount of state and local taxes (i.e., income, real property, DMV fees) paid during the calendar year to $10,000 ($5,000 in the ca
e of a married individual filing a separate return). State and local tax payments in excess of those amounts are not deductible. The new limitation applies to tax years beginning after December 31, 2017, and before January 1, 2026.

For example, if you paid $17,000 in combined state and local taxes during the tax year, you are now only allowed to deduct $10,000 of the amount paid, thereby losing the remaining $7,000 as a deduction.

Would it not be great to take the deduction amount no longer allowed for the above taxes, and use it instead to preserve a deduction through a donation to your spcaLA.

Truly, it can be a win-win situation for you, for our animals and the people we serve, whether they be victims of animal cruelty, domestic violence, disasters, or children re-learning empathy.

We are a private charity, we are not connected to any other spca in the world, and we have been caring for animals and those that love them since 1877. Imagine what we can do together!

How about it?