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New York State Enacts Elective Pass-through Entity Tax as a SALT Deduction Limitation Workaround | Kelley Drye & Warren LLP


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In April 2021, New York State enacted legislation providing for a new elective pass-through entity (PTE) tax on partnerships and Subchapter S corporations.
The 2017 Tax Cuts and Jobs Act generally limits an individual’s deduction of state and local taxes to $10,000 per year (the “SALT Deduction Limitation”).  In November 2020, the IRS issued Notice 2020-75, which held that state and local income taxes (whether mandatory or elective) paid by a partnership or a Subchapter S corporation would generally not be subject to the SALT Deduction Limitation.[1] 
The PTE tax is designed to be deductible for federal income tax purposes, thus enabling individual partners or shareholders of an electing pass-through entity to avoid the SALT Deduction Limitation with respect to their respective shares of state and local taxes attributable to the entity. ....

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Emily Ratajkowski ma idealnie płaski brzuch. Urodziła miesiąc temu

Emily Ratajkowski ma idealnie płaski brzuch. Urodziła miesiąc temu
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