Though SALT elections do not apply to many Edward Jones employees right now, there may be a time in the future when that changes.
State and Local Taxes (SALT) are capped at a $10,000 deduction for federal taxes under current tax law. Many states have enacted laws which allow businesses to pay the state taxes due on the pass through earnings on behalf of their owners.
At this time, almost all of our clients that are partners with Edward Jones do not have an option. They will be limited to the $10,000 deduction. It is very possible, however, that in the future, your partnership status (GP, SP, JVSP) and state of residency will open up an opportunity to have these taxes paid at the partnership level, which would mean you deduct more than the $10,000 amount. This is dependent on how the Jones structure works in the future and there is no guarantee that this will work for everyone. We are talking with Jones about future changes and will update clients as we know more.
For your small business clients, the ability to fully deduct SALT taxes may be available if they live in the right state and have the right structure in place. HKA has a small business tax team that would love to talk to your clients to see how we can help them in this or other areas!
For questions about this e-mail or to get in touch with HKA, feel free to respond to this e-mail or give us a call at (314) 993-4285.