State Taxation of Passthrough Entities and the Federal Deduction
Author: Hodgson Russ LLP, Christopher L. Doyle, Elizabeth Pascal, William S. Turkovich
| CPE Credit: |
2 hours for CPAs |
As a result of the SALT deduction limitation imposed as part of the Tax Cuts and Jobs Act, a number of states, including Connecticut, New Jersey, and now New York, have enacted Passthrough Entity (PTE) taxes, joining a handful of other jurisdictions that impose tax on flow-through entities rather than their owners.
This course will take you through some of the similarities and differences of these taxes and some of the questions arising as these new taxes are implemented. We will also look at recent IRS guidance on the federal deduction for the PTE taxes to examine the potential federal tax benefits of these SALT deduction workarounds.
Publication Date: June 2021
Topics Covered
- The Federal SALT Deduction Cap
- Overview of Pass”Through Entity (PTE) Taxes
- PTE Taxes in NY, NJ & CT (and NYC)
- Resident Credits
- Other States with PTE Taxes or Considering PTE Taxes
- The Federal Deduction for PTE Taxes
Learning Objectives
- Recognize some of the similarities and differences of these taxes
- Identify some of the questions arising as these new taxes are implemented
- Describe recent IRS guidance on the federal deduction for the PTE taxes
- Recognize how many basic models of resident credits there are
Level
Basic
Instructional Method
Self-Study
NASBA Field of Study
Taxes (2 hours)
Program Prerequisites
None
Advance Preparation
None
