The IRS will issue SALT deduction regulations for pass-through entities. The regulations will clarify that specified income tax payments are deductible by entities such as partnerships and S corporations in computing their nonseparately stated income or loss. Specified income tax payments include amounts paid by pass-through entities to a state, political subdivision of a state or the District of Columbia according to a direct imposition of income tax on the entity, without regard to whether the tax is the result of an election by the entity or whether the partners or shareholders receive a partial or full deduction, exclusion, credit or other tax benefit. Read Notice 2020-75 . Contact Cg with questions. © 2020