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
Instructors
Hodgson Russ LLP
Hodgson Russ has approximately 200 attorneys in offices in Albany, Buffalo, New York City, Rochester and Saratoga Springs, New York; Hackensack, New Jersey; Palm Beach, Florida, and Toronto, Canada.
We serve a wide range of clients, from multinational and privately held corporations to nonprofit organizations, governmental entities, and individuals. Our attorneys practice in every major area of law and use multidisciplinary work teams to serve the specific, often complex, needs of our clients.
Christopher L. Doyle
Chris is the firm's State & Local Tax (SALT) Practice Leader. He focuses primarily on New York State and New York City business taxes, including corporate income tax, unincorporated business tax, flow-through entity income taxation and sales and use taxes.
Chris provides counsel for tax-wise transaction structuring as well as tax controversy representation at every level, from audit representation to representation before New York's Court of Appeals. He frequently represents taxpayers before New York State and New York City tax agencies and administrative hearing institutions.
Chris’ primary goal is to have the members of the SALT practice deliver timely, creative, practical and otherwise excellent service to its clients. He also helps the practice's partners envision and adopt amendments to the practice's strategic plan, a plan that is rolled out to SALT’s internal stakeholders (both lawyers and non-lawyers) for implementation.
The Hodgson Russ SALT Practice is constantly increasing its geographic footprint as client’s require progressively less of our attorneys’ face-to-face time and revenue-starved states press progressively harder both in the enactment of constitutionally-questionable tax laws and in the over-zealous interpretation of those laws on audit.
Elizabeth Pascal
Liz concentrates her practice in tax law with a focus on New York State, New York City, and multistate tax issues. She assists individual and business clients with New York State and New York City audits, including residency, sales tax, unincorporated business tax, commercial rent tax, and corporate tax audits. Liz has also helped many clients successfully navigate New York State’s voluntary disclosure process. She works with each client to determine the optimal strategy to resolve tax issues, whether negotiation through the audit process, litigation, or tax planning.
Prior to joining Hodgson Russ, Liz served as an intern for U.S. District Judge William Skretny in the Western District of New York. Before entering law school, she was a professor of comparative politics and has taught at Connecticut College, Wesleyan University, and University at Buffalo.
William S. Turkovich
Bill concentrates his practice on federal and international tax law matters, including guiding Canadian and other non-U.S. clients on U.S. tax matters. He has comprehensive experience advising clients on business expansion into the United States, structuring considerations in purchasing U.S. real estate, choice of entity decisions, the tax implications of relinquishing U.S. citizenship or residency status, the application of the CFC and PFIC U.S. anti-deferral regimes, and the new tax reform rules, including the Code section 199A deduction for pass-through entities and the interest deductibility limitations.
Bill also has broad experience working on tax controversy matters, including advising clients on voluntary disclosure options, IRS audits, and U.S. Tax Court matters. He also works with a variety of tax-exempt organizations and private foundations on obtaining and maintaining tax-exempt status. Bill is also a member of the firm’s Oil & Gas Practice, where he provides advice and guidance on the tax implications for private placements.