Updates from the Firm
New Details on Pass-Through Entity Tax
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:
Pass-Through Entity Tax Worksheet
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.
Update on Pass-Through Entity Tax
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.
Evolving Tax Law Changes
Taxpayers are breathing a sigh of relief as the proposed 2021 tax changes appear to be less onerous than once feared.