JULY 29, 2019 VOL. 55, No. 30
Andrew Cuomo
INSIDE
westfaironline.com
Ned Lamont
Donald Trump
Letitia James
‘Civil war’ over SALT CUOMO TO TRUMP: SEE YOU IN COURT FOR TAX SHOWDOWN
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LEAVING CONNECTICUT
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FACEBOOK CRYPTOCURRENCY
BY PETER KATZ pkatz@westfairinc.com
“M
y message to Mr. Trump and the IRS is simple: we look forward to seeing you in court,” New York Gov. Andrew M. Cuomo said on July 17 concerning a new lawsuit filed by New York, Connecticut and New Jersey against the Internal Revenue Service. The lawsuit seeks to over-
turn an IRS rule preventing people from claiming contributions made to local governments as charitable contributions. The notion of making charitable contributions instead of tax payments to local governments was put forward as a way to skirt the new limit of $10,000 in deductions on federal income tax returns for payment of state and local taxes. The limit, known as SALT, was put into effect in
the 2017 tax bill passed when Republicans had control of both the House and Senate and was seen by critics as retribution against states controlled by Democrats which have high local and state taxes. In addition to the IRS, the suit names Treasury Secretary Steven Mnuchin as a defendant. Mnuchin had said that the cap on SALT deductions was intended to “send a message.” » SALT
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William Tong
RAND REALTY: HIGH-END MARKET SPOOKED BY SALT CAP THE BETTER HOMES AND GARDENS RAND REALTY second-quarter market report for the lower Hudson Valley shows the condominium and co-op market segments soaring while the cap on federal income tax deductibility of state and local taxes (SALT) continues to undercut the upper end of the market, especially luxury single-family homes. Joe Rand, chief creative officer for the organization, described the luxury mar-
ket as being “spooked” by SALT and told the Business Journal, “I think the market is fundamentally strong. We’ve got pretty robust demand at most price points. You’ve got a strong economy. You’ve got low interest rates.” In Westchester, the report showed closed sales of co-ops at 489 in the second quarter of 2019, up from the 455 sold in the second quarter of 2018. Condo sales were also up, with 346 sold compared with 324 in the » REAL ESTATE
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