Treasury Issues Proposed Rule on Charitable Contributions and State and Local Tax Credits

 

On August 23, 2018, the U.S. Department of the Treasury proposed a “rule on the federal income tax treatment of payments and property transfers under state and local tax credit programs [that] would prevent charitable contributions from being used to circumvent the new limitation on state and local tax deductions.” The proposed rule is not expected to affect the majority of taxpayers (because of the significant increase to the standard deduction under the new federal tax system). Press Release.