🦍 OBBB Play: How to Double-Dip the SALT Deduction (No, Not That Kind of Salt)
July 2025
Bad news: Gorillas can’t eat too much salt.
Good news: Small business owners now can — at least on their tax return.
Thanks to the OBBB, the SALT (State and Local Tax) deduction cap is up to $40,000. And in high-tax states like California, you can now pull off a two-pronged tax hack so good even the IRS is sweating.
đź’ˇ The Double SALT Strategy
Step 1: Elect PTE (Pass-Through Entity) Tax
If you run an S-Corp or partnership in California, opt into the PTE tax.
This lets your business deduct state taxes — with no SALT cap at the entity level.
Reduces your federal taxable income big time. (Think gorilla-sized savings.)
Step 2: Stack Your Personal SALT Deductions
Thanks to the new $40K cap, you can now also deduct up to $40,000 of your personal state income and property taxes on your Schedule A.
That’s in addition to the PTE deduction above.
🦍 Example for the Jungle:
Let’s say:
Your S-Corp pays $30,000 to California via PTE election — fully deductible by the business.
You personally pay $20,000 in property tax on your home.
New rules:
S-Corp deducts the $30K.
You deduct the full $20K on your own return.
That’s $50K+ of state/local tax write-offs — all legal, all juicy, all above board (unless you’re above the income phaseout).
📅 Timing Matters — Don’t Slip on the Banana Peel
PTE is a no-brainer for high earners in high-tax states.
To maximize both buckets, time your state estimated payments and property tax bills so they both hit the same year.
SALT deduction phases out above $500K income, so check your bracket before you go full gorilla.
🦔 How Hedgi Helps
Hedgi tags and tracks your PTE payments as business deductions.
Property taxes show up on your personal ledger for Schedule A reporting.
We keep your SALT buckets clear, your audit trail tidy, and your accountant (or gorilla) very happy.
👉 Bottom Line
Don’t leave this deduction on the table — the OBBB just gave SMBs in high-tax states a golden opportunity.
Let Hedgi help you double-dip (the legal kind).
Sign up for the waitlist. Your tax return — and maybe your blood pressure — will thank you.