Tax Planning for Pass-Through Entity State Tax Elections: Federal State and Local Tax Limit (SALT) Workaround FLEXCAST

Overview

Substantial federal tax saving opportunities are available for numerous states which have implemented pass-through entity tax credit legislation. S corps, partnerships, and LLCs filing as S corps or partnerships, are generally eligible to benefit from federal tax deductions related to individual state tax on pass-through income. This class from Jane Ryder, EA, CPA, will look at tax planning for passthrough entity state tax elections and the SALT workaround for the federal limitation. These passthrough entity tax credits offer substantial federal tax saving opportunities with 29 states having already implemented these salt workarounds.

Highlights

Federal K-1. Tax Planning for PTET Credits.

Prerequisites

None.

Designed For

CPAs and other tax professionals.

Objectives

Fundamentals of State PTET Elections. Who may or may not use the PTET State SALT Workarounds. State treatment of PTET payments. Timing of PTET elections and/or payments for valid PTET Elections. Individual partners, shareholders, or LLC members opt out. Form 1065, federal Schedule K-1 Federal deduction for pass-through K-1 income for PTET stat tax. Allocating PTET Payments. Tax Planning for PTET Credits. Federal and State Tax Benefits of PTET Elections.

Preparation

None.

Notice

This is a FlexCast (no exam required) and may be viewed only Monday - Saturday, 5am - 5pm PT. You may take up to one year from the date of purchase to complete the course. Pause your FlexCast and resume at a convenient day during the hours above. Partial credit for 2+ credit courses: If you are unable to complete the course in one sitting, partial credit can be awarded (minimum of one credit). To earn the remaining credits, you must return later and start the course from the beginning. Use chat to ask questions of a subject matter expert during the program.