Tax Section Odyssey PTET SALT deduction: AICPA's "No. 1 priority"
May 22, 2025
Join Melanie Lauridsen, Vice President of Tax Policy & Advocacy for the AICPA, as she dives into the intricate world of tax reform. She discusses the AICPA’s crucial advocacy for pass-through entity tax (PTET) state and local tax (SALT) deductions amid recent legislative changes. Expect insights on the significance of timely passage for tax bills, potential hurdles in Congress, and the ongoing challenges facing the IRS post-pandemic. Melanie also highlights key survey concerns from AICPA members just after tax filing season.
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Aggressive Tax Bill Timeline
- The tax bill is part of an aggressive legislative timeline aiming for House passage by Memorial Day and Senate approval by July 4.
- Delays risk retroactive lawmaking, complicating client tax planning.
PTET SALT Deduction Priority
- The AICPA sees the PTET SALT deduction as the top priority and a crucial tax provision for pass-through entities.
- The bill as drafted unfairly excludes specified service trade or businesses (SSTBs) from this deduction, harming many professionals.
Unfair Exclusion of SSTBs
- The current bill ties PTET SALT deductions to the QBI deduction, excluding many SSTBs, including accountants and doctors.
- This exclusion creates a worse situation than post-TCJA for these businesses, violating fairness and tax policy principles.