Matt Hunsaker Comments on New York SALT Cap Workaround Bill in New York

News / December 18, 2020

Partner Matt Hunsaker is quoted in an article published on Dec. 18, 2020, by Law360’s “Tax Authority.” The article, “Partner Residency May Undermine SALT Cap Workaround Laws,” reports on a new bill in New York that would allow entity-level taxation of pass-throughs to avoid the SALT cap. However, the article notes that the bill raises significant concerns about such laws, particularly for nonresident partners.

Hunsaker told the publication that he worried about what would happen if the laws become more prevalent. Hunsaker said he wondered whether a home state's failure to credit tax paid to the partnership state would trigger constitutional issues, since it could amount to double taxation. And he said he was concerned about disparate treatment between federal and state governments for businesses that are taxed one way by the federal government and another way by the state. “Unless there is a robust system for crediting taxes paid, allowing nonresidents to get the benefit of the tax paid at the partnership level, I think it's going to be a disaster,” Hunsaker said.

Read the article (registration required).

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