Rye town officials decry US Treasury's new federal tax rules
Town of Rye officials are decrying new rules from the Trump administration that aim to block high-tax states from getting around a cap on state and local deductions.
The Treasury Department's newly released rules target moves by states like New York, New Jersey and California - where residents could see substantial increases in their federal tax bills next spring because of the $10,000 cap.
Town Supervisor Gary Zuckerman says the town council passed a resolution that provides a loophole for residents of Rye, Rye Brook, Port Chester and those living in the Blind Brook School District to get around the new federally mandated $10,000 cap on state and local taxes. Instead of paying property taxes the normal way, the resolution would have allowed homeowners to donate that money to the town's charitable fund.
However, the Treasury Department's new rule released Thursday will prevent taxpayers from skirting around the cap.
Zuckerman says Rye officials will continue to fight. He is encouraging homeowners to talk to their accountants.
Tax expert Andrew Kabatchnick says homeowners who try to get around the tax cap by making charitable donations will be opening themselves up for an audit.