The State and Local Tax (SALT for short) deduction cap has frustrated business owners and high-income earners since 2018. But there is a legal and IRS-respected strategy that can help reclaim lost deductions: the Pass-Through Entity (PTE) tax election.

Originally introduced by states in response to the federal Tax Cuts and Jobs Act of 2017, the PTE election allows qualified businesses to shift state income tax from the individual level to the entity level—restoring deductibility and reducing federal taxable income.

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