The Twelve Days of Taxmas – Pass-Through Entity Tax
As Christmas approaches, Klatzkin is putting a twist on a holiday classic. But rather than filling your head with drummers drumming and golden rings, we’re focused on providing tips through “The Twelve Days of Taxmas” blog series that could help minimize your tax liability.
On the eleventh day of Taxmas, Klatzkin gave to me the Pass-Through Entity Tax (PTET). Several states, including New Jersey and New York have passed legislation to circumvent the $10,000 State and Local Tax (SALT) deduction limitation. Taking advantage of the PTET allows a company to deduct an amount equivalent to the individual’s state and local tax generated by the business’s income. The deduction is a federal deduction lower federal taxable income.
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For additional information on the PTET or to learn more about how Klatzkin can help with another tax-related issue, click here to contact us. We look forward to speaking with you soon.
©2021 Klatzkin & Company LLP. The above represents our best understanding and interpretation of the material covered as of this post’s date and should not be construed as accounting, tax, or financial advice. Please consult your tax advisor concerning your specific situation.