How the SALT Cap Workaround Actually Works in 2026

The $10,000 SALT deduction cap has been a sticking point for taxpayers in high-tax states since 2018. But many states fought back with a clever workaround: the passthrough entity tax, or PTET. In this episode, Lucas and Luna break down exactly how PTET works, who it helps, and whether it will survive legal and political challenges. Using a concrete example of a New Jersey couple losing $25,000 in deductions, they walk through the mechanics of shifting state tax payments from the individual to the business level—and what that means for your 2026 tax bill. They also discuss the latest developments as of July 2026, including proposals to raise or repeal the cap, and why the workaround may become permanent. #SALT #SALTCap #PTET #PassthroughEntityTax #StateTax #TaxDeduction #TaxCutsAndJobsAct #HighTaxStates #NewYork #NewJersey #California #TaxPolicy #Economics #FexingoBusiness #BusinessPodcast #TaxReform #Workaround #2026Taxes Keep every episode free: buymeacoffee.com/fexingo