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:
Here is an example of a Pass-Through Entity Tax Worksheet for reference, with footnotes for specific line items, to show how these new regulations might effect you.
Several states have recently enacted legislation that allows S-Corporations and partnerships to pay state income taxes at the business level via their business tax returns.
Taxpayers are breathing a sigh of relief as the proposed 2021 tax changes appear to be less onerous than once feared.
Licensed and Certified CPA, ABV & CFF
44+ Years Experience, Specialists in Veterinary Financial Services & Management
11858 La Grange Ave, Ste B
Los Angeles, CA 90025
Tel 310.393.2434
Fax 310.393.8777
©2012 - 2022 | Gatto McFerson | All Rights Reserved | Site by MYHRECO