$40K SALT Deduction Explained: New Rules, Phase-Outs & PTE Workarounds

On July 4, 2025, President Trump signed the One Big Beautiful Bill Act, raising the SALT deduction cap from $10K to $40K through 2029. Sounds like a huge win for taxpayers. but there’s a hidden phase-out that limits who actually gets the full deduction.

If you're a high-income earner or a small business owner in a high-tax state like California, you might not get the full $40K. And there's a smarter strategy on the table: the Pass-Through Entity (PTE) tax election.

In this video, we break down:
✅ Who qualifies for the $40K SALT deduction
⚠️ How the IRS phase-out reduces your benefit
💡 A better workaround for S-Corp and LLC owners in California
📈 How to legally deduct more through the PTE election

Don’t leave thousands on the table. Get clarity on SALT, taxes, and smarter strategies in just a few minutes.

💬 Drop a comment if you’ve ever been hit by the SALT cap
👉 Want help with SALT+PTE tax? Book a 1-on-1 call with me here: https://calendly.com/d/dnf-rmq-q5g?ut...

CHAPTERS:
00:00 Intro
00:24 The $40K SALT Cap Explained
00:43 The IRS Phase-Out You Didn’t Hear About
02:18 How to Make the PTE Election Work for You


📺 Next Video: “The $5,000 Payroll Trap for S-Corps — And How to Fix It”

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