Getty Images

NYC to consider tax deduction limit workaround

October 30, 2018 - 6:13 pm

NEW YORK (AP) -- A New York City councilman wants to help residents get around a new federal law that puts a $10,000 cap on state and local tax deductions.

Democratic Gov. Andrew Cuomo signed a bill in April that allows municipalities to issue tax credits for donations to public education funds and charities.

The Wall Street Journal reports that on Wednesday, Democratic Councilman Ritchie Torres will introduce legislation to establish a city-operated charity for that purpose.

The Internal Revenue Service, which is challenging such workarounds, will hold a Nov. 5 hearing on the issue.