Bradley attorney Bruce Ely was quoted in Bloomberg Law News discussing the probability of an Indiana bill, SB-2, enacting a pass-through entity tax workaround to the federal $10,000 state and local tax deduction limit for individuals.
Ely noted that Indiana’s law permits a credit for taxes imposed by and paid to another state – an attribute that is not necessarily available in all the other 30 states where this workaround has been implemented.
Some Indiana tax advisers are advising their clients to extend their tax returns so they may take advantage of this retroactive election, and Ely agrees with that advice.
Ely said, “Any time you have retroactive elections, you run the risk of the mismatches in return filing and election deadlines.” The bill could result in millions of dollars of savings for select small businesses in Indiana.
The full article, “Indiana Likely to Join 30 Other States with SALT Cap Workarounds,” was published in Bloomberg Law News on February 21, 2023. (login required)