MARK KOHLERMain Street Professionals, Main Street Professionals, Main Street Professionals, Main Street Professionals, Main Street Professionals, LLC · Owner at Main Street Professionals, LLC

Year-End Tax Tip: The SALT Workaround for High-Income Earners

16 Nov 2025 · 1 min

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Mark Kohler explains how S-corporation owners can have their business pay state income tax to work around the $10,000 SALT deduction cap on individual returns. The strategy works for earners around $500k+ in states with income tax, but must be set up before December 31.

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The SALT workaround. Now this is a big one because it has to be done before December 31st. It's a strategy in about half of the states for any of you that are high income earners, 1 percenters that are going to phase out of the salt the state and local tax deduction, which has been raised to 40 grand, but it does phase out back to 10 based on your income. The strategy is letting your S corporation pay the state tax for you out of your corporation. And it's a way to take the write off when normally you're not allowed on your 1040. It's called the salt workaround. If you're making more than 500 grand and you live in a state with state tax, talk to your accountant. This is something that has to be done before year end to take advantage of.