Electing Pass Through Entity News Today : Breaking News, Live Updates & Top Stories | Vimarsana

The Alabama Department of Revenue is extending the due date for certain pass-through entities to file the election to be taxed at the entity level for the 2022 tax year.

The Alabama Electing Pass-Through Entity Tax Act Act 2021-1 established a new alternate state income tax applicable only to electing partnerships/LLCs treated as pass-through entities and to S corporations PTEs.

Alabama Legislature unanimously enacted elective pass-through entity tax PTE Tax last year as workaround to the so-called SALT Cap, which was part of the Tax Cuts and Jobs Act of 2017. The SALT Cap limits the deductibility of state and local taxes to $10,000 annually.

Alabama Legislature unanimously enacted elective pass-through entity tax PTE Tax last year as workaround to the so-called SALT Cap, which was part of the Tax Cuts and Jobs Act of 2017. The SALT Cap limits the deductibility of state and local taxes to $10,000 annually.

Where individual, corporate, and passthrough entity taxation meet By Mo Bell-Jacobs, J.D.; Bridget McCann, CPA; and Steve Wlodychak, J.D., LL.M. Related Editor: Bridget McCann, CPA By now, most practitioners are well aware of the annual limitation enacted by the law known as the Tax Cuts and Jobs Act (TCJA), P.L. 115-97, in 2017 that limits the amount of state and local taxes individuals can deduct for federal income tax purposes to not more than $10,000 ($5,000 in the case of a married individual filing a separate return) (the SALT cap). 1 No doubt most are also aware of the ensuing legi...