Illustration of pass-through entity tax planning in 2026 — a US map, state connections, and tax filings representing PTET SALT cap workaround analysis
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Pass-Through Entity Tax 2026: SALT Cap Workaround Guide

BySW Accounting admin

Is the pass through entity tax election still worth it after the higher SALT cap? For many owners of profitable pass-throughs in high-tax states, the answer is still yes — but the analysis is now owner-level, state-specific, and no longer automatic. The pass through entity tax (PTET) survived the 2025 SALT cap increase; the decision…

Illustration of the 2026 SALT deduction cap — courts upholding the cap while the One Big Beautiful Bill raises the limit from $10,000 to $40,000, with a phase-out above $500,000 of income
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SALT Deduction Cap 2026: Now $40,000 (Courts Uphold It)

BySW Accounting admin

Is the SALT deduction cap going away in 2026? No. Federal courts continue to uphold the SALT deduction cap, with a New Jersey federal court dismissing another constitutional challenge in May 2026. But there is relief: the One Big Beautiful Bill raised the cap from $10,000 to $40,000 beginning in 2025, with a 1% annual…

Illustration of 2026 homeowner tax deductions — the new $40,000 SALT cap on real estate taxes, mortgage interest limits, and non-deductible home costs on IRS Schedule A
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Homeowner Tax Deductions 2026: New $40,000 SALT Cap Guide

BySW Accounting admin

What home expenses can you actually deduct in 2026 — and what’s the new SALT cap? To deduct homeownership expenses you must ITEMIZE. The two main deductible items are (1) state and local real estate taxes — now subject to a $40,000 limit ($20,000 if married filing separately) under the increased SALT deduction cap —…