Chapter 23: Expanded State & Local Tax (SALT) Topics

In this section

• Pass-Through Entity Taxes & Elective Workarounds
  Explore how states have evolved pass-through entity tax regimes to mitigate SALT deduction limits and discover key CPA exam insights on elective workarounds.
• Nexus & Apportionment Formula Variations
  Explore how state tax nexus is established and the diverse methods states use to apportion income, including single-sales factor, cost-of-performance, and market-based sourcing, with practical multi-state corporate examples and illustrations.
• Local Jurisdiction Compliance & Credits
  City-level taxes, specialized local tax credits, and strategies for navigating combined compliance burdens in CPA Tax Compliance and Planning.
• SALT Planning Opportunities & Risk Areas
  Explore key SALT planning strategies, proactive measures to minimize double taxation, and potential risk areas or conflicts that CPAs should carefully navigate for optimal compliance and planning.