Gatto McFerson Certified Public Accountants
Gatto McFerson Certified Public Accountants

New Details on Pass-Through Entity Tax

2022-02-24T07:35:47-08:00February 22nd, 2022|General Articles, Latest News|

As we have mentioned before, several states, including California, have recently enacted legislation that allows S-Corporations and partnerships to pay state income taxes at the business level via their Pass-Through Entity (PTE) tax return. This “work-around” was designed to avoid the current $10,000 limitation on the deductibility of state and local taxes for Federal tax purposes. Here is how it works:

The Biden Tax Plan

2021-11-29T11:08:46-08:00October 28th, 2020|General Articles, General Resources|

For those with taxable incomes above $400,000, expect higher ordinary income tax rates, additional payroll taxes, capped itemized deductions, and a phase out of Qualified Business Income deduction.

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