Can not dodge the tax

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NJ property taxes too high!

Well the IRS has ruled that you can not dodge the tax deduction limit for property taxes by paying it to a charity.

From NJ Spotlight, “New regulations by the Internal Revenue Service significantly undercut — at least for now — a New Jersey law that was enacted last year to help residents get around the capping of the long-cherished SALT deduction for state and local taxes.

The action taken by the IRS this week drew immediate condemnation from Gov. Phil Murphy and other elected officials who backed the law, and it will likely trigger another a lawsuit involving New Jersey Attorney General Gurbir Grewal and the federal government.

Grewal previously threatened to sue the IRS if it moved to undermine the state’s so-called workaround law, which gave local governments a way to reclassify most property-tax payments as charitable contributions after the federal SALT deduction was capped at $10,000. In a statement posted on social media in response to the latest IRS action, Grewal said, “I remain as committed as ever to challenging the IRS in court.”

So Murphy and Grewal have taken offense with the fact that they can not do (what I call) their parlor trick and want to sue the IRS. Well that is just stupid! A waste of the taxpayers money and they know it. I think that they just want to get the credit for standing up to Trump and the Republicans.

What needs to happen of course is for the property tax to be reduced to reasonable levels. Anything else is and will never be satisfactory.

That is my opinion- Jumpin Jersey Mike

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