Gov. Cuomo crowed approximately his plan to rescue New Yorkers from new federal limits on state and native tax deductions — but the concept is doomed, tax mavens warn.
The scheme will thwart “an financial arrow aimed at the center of this state’s economy,” Cuomo promised.
The plan will permit New Yorkers “donate” finances to a state-run charitable trust a good way to then finance common state services and products, like education.
The bills can be deducted from federal income taxes as charitable donations, and might count towards all state and native taxes owed in New York.
“It’s a real stretch of the language and of the imagination,” Steven Malanga, a tax knowledgeable with the New York Institute, instructed The Post. “The IRS is going to mention that if you get one thing of price in return, it’s no longer a charitable donation.”
Underneath the Trump administration’s December tax overhaul, taxpayers can claim handiest $10,000 of their state and native assets and income taxes as federal deductions. The change is anticipated to hit toughest in high-tax states like Ny.