High-Income Business Owners Escape $10,000 Tax Deduction Cap Using Path Built by States, Trump Administration

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High-Income Business Owners Escape $10,000 Tax Deduction Cap Using Path Built by States, Trump Administration
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High-income business owners—aided by states and the IRS—are finding a path around the $10,000 cap on the state and local deduction

on the state and local tax deduction would benefit the rich too much, but some of America’s top earners—including private-equity managers and law firm partners—are already legally circumventing the cap on much of

their income.for owners of closely held businesses that is proliferating around the country. So far, about 20 states have enacted versions of it, including New York, California, Connecticut, New Jersey and Illinois.

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