Are you familiar with New York State’s new Pass-Through Entity Tax (PTET)? This optional tax can provide significant benefits for individuals. The tax was designed as a workaround for the individual state and local tax (SALT) deduction which is currently capped at $10,000 due to the Tax Cuts and Jobs Act. The New York state (NYS) PTET will be deductible on the federal level and a NYS credit will be allowed against regular state income tax.
Under this new rule, Partnerships and New York S corporations may annually elect to pay this optional tax on certain income for tax years beginning on or after January 1, 2021. The election for the 2021 tax year must be made by October 15, 2021, to be effective.
Join Janover team members Peter DiPaola, Richard Feldman and Barry Sunshine for a live webinar Thursday, September 30 at 1 p.m. for an overview of the new PTET, including recently released updated guidance from the New York Department of Taxation and Finance. All members in partnerships and shareholders in New York S Corporations are encouraged to attend our webinar.
During the webinar, you’ll learn:
- Who is eligible
- Advantages and benefits of electing to participate
- Effects on cash flow and other considerations
- How to elect to participate