State Taxation of Pass-Through Entities and Federal Pass-Through Entity Tax (PTET) Deductions
This course, led by state tax attorney from Hodgson Russ LLP, examines state taxation of pass-through entities (partnerships, LLCs and S corporations) and provides practical advice for navigating the elective pass-through entity tax (PTET) regimes that emerged in response to federal limitations on individual state and local tax (SALT) deductions.
The topics covered in this course will include multistate nexus issues related to determining when and how states are permitted to tax pass-through entities and their owners; federal SALT deduction limitations and their impact on pass-through entities; elective PTET regimes; and personal income tax credit issues associated with multistate PTET payments.
Who Should Attend
All CPAs, enrolled agents, tax return preparers, tax attorneys, corporate attorneys, and other practitioners who review or are responsible for preparing multistate tax returns for clients or advise on multistate tax issues will benefit from this insightful webinar.
Topics Covered
- Nexus and pass-through entities
- State taxation of passthrough entities prior to the TCJA
- Federal SALT deduction limitations and their impact
- Elective PTETs
- Considerations in making a PTET election
- Resident state deductions or credits for other states’ PTETs
- Federal tax issues: second class of stock, possible need for special allocations, etc.
Learning Objectives
- Understand when states are permitted to tax pass-through entities and their owners
- Identify and compare the different ways that states tax pass-through entities and their owners
- Understand how federal limitations on the state and local tax (SALT) deduction for individuals have impacted state taxation of pass-through entities
- Compare state approaches to elective pass-through entity taxes
- Identify factors to consider when deciding whether to make a PTET election
Level
Basic
Instructional Method
Group: Internet-based
NASBA Field of Study
Taxes (2 hours)
Program Prerequisites
None
Advance Preparation
None
