Once the election is made for the 2022 tax year, New Mexico pass-through entity owners may exclude the New Mexico-sourced portion of their distributive share of income from the pass-through entity on their New Mexico return. See below for how this treatment changed starting January 1, 2023. ...
The law authorizing the PTET does not specify a time period during which the PTE must meet the “qualifying pass-through entity” test. As a result, a PTE can make the PTET election so long as it meets the “qualifying pass-through entity” test at any time during the taxable year and...
Pass through entity tax insights More Insights Michigan flow-through entity tax election considerations before March 15 deadline Article / 3 min read How does a state pass-through entity tax deduction affect owners’ tax returns? Article / 3 min read Pass-through entity tax (PTET) electi...
What Effect Does Pass-Through Entity Election Have? The key benefit to a PTE election is the full federal deductibility of the entity’s state income taxes paid with a PTE tax. While the income and tax reported is dependent on each state’s rules, there is no federal limit to the amount...
Pass-through entity definition: Pass-through entities are a type of business structure where the business income and tax liabilities pass through to the owner’s personal tax return.Feeling lost in the tax maze? Pass-through entities are business structures that help make taxes simpler. Company st...
New Mexico’s election will become available beginning tax year 2022. The election may be made with a return filed on or before the original or extended due date, as applicable. Entity tax payments also need to be made on or before the original due date of the US federal income tax retur...
Since then, legislation was enacted (HB 1456) that made an important change to Virginia’s PTET — namely that the election to be subject to the PTET can now be made by any pass-through entity (PTE) that have owners other than just individuals. Additional information on that change to ...
The article discusses the provisions of the Section 179 election which refers to the state taxation of pass-through entity rules in the U.S. The state taxation rule allows eligible taxpayers to choose to expense Section 179 property based on particular limitations. However, taxpayers should reduce...
“specified income tax payments,” which are deductible by the pass-through entities in computing their non-separately-stated income or loss. Further, the Notice clarifies that a PET can either be mandatory or elective and include a deduction or credit to the owners of the pass-through entity....
through Entity (“PTE”) Tax. This new tax is enacted as a work around to the $10,000 state and local tax (“SALT”) deduction limitation, which was implemented under the Tax Cuts and Jobs Act (“TCJA”). Since state income tax is imposed directly on the Pass-through...