On Thursday, August 23, the Internal Revenue Service (IRS) released preliminary rules related to New York State and other states’ attempts to preserve the federal income tax deduction for state and local taxes (SALT). The preliminary IRS rules essentially prohibit deductions for contributions to Charitable Reserve Funds. Homeowners who are interested in Charitable Reserve Funds and any possible tax benefits from contributions to such funds should consult a qualified tax advisor regarding their personal situation.
For information on the preliminary rules and the rule making process related to those rules, please click here: https://www.federalregister.gov/documents/2018/08/27/2018-18377/contributions-in-exchange-for-state-or-local-tax-credits
The Association of Towns will be monitoring the rule making process and continue to apprise towns of any developments.