Understanding New York’s pass-through entity tax The NYPET is effective for tax years beginning on or after January 1, 2021, for eligible entities that are required to file a New York return.7 Entities opting to participate in the NYPET regime must make an annual election online, by March...
How Does Pass-Through Entity Eligibility Differ Between States? For residents of states with no personal income tax, the decision on whether to elect into PTE taxes may be easier. All states allow the PTE tax to be used on the owner’s personal income tax returns, either via credit or inc...
An owner of an electing pass-through entity may receive a refundable credit in the amount of the owner’s share of tax paid by the pass-through entity. This contrasts with the 2022 treatment, which allowed for electing pass-through entity owners to exclude pass-through entity An entity making...
Some factors management of a pass-through entity might want to consider when determining whether a PET is attributed to the entity or its owners include: Are the pass-through entity owners permitted to file a tax return and claim the payment(s) of tax by the entity against owner income taxes?
An S-corp is not a business entity type but a tax election that LLCs or corporations can make with the IRS. An S-corp’s income taxes flow through to its owners. For example, if Bob’s gift shop elects S-corp taxation he would file Form 1120-S as an information tax return. He...
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 ...
ext. 7705 .tax.utah.gov Pass-through Entity Withholding Publication 68 Revised 11/11 Introduction This guide provides information to help pass-through entities and pass-through entity taxpayers understand and comply with Utah’s pass-through entity withholding requirements that went into effect Jan. ...
including any extensions which have been granted following the close of that tax year for which the entity elects to be taxed as a pass-through entity.” Any revocation for such tax year can now be made on the appropriate form submitted or before the due date of the r...
Other State Tax Credits–The law also provides a credit to NYS residents against their personal income tax for their share of any pass-through entity tax “substantially similar” to NYS’s PTE tax that is paid to another state or locality. However, eligible entities should con...
Claiming the Credit in California A qualified taxpayer can claim a credit on their California tax return equal to the tax paid by the qualified entity on their distributive share of income, gain, loss, and expense subject to tax in California. ...