One of the legacies of the Tax Cuts and Jobs Act was the imposition of a $10,000 annual state and local tax (SALT) deduction limitation on federal income tax returns filed by individuals. In response to these limitations, many states have enacted laws that generally create an elective entity-level tax on pass-through entities (PTEs) and provide owners with a corresponding individual tax credit or exemption from tax for income received from PTEs, which is not subject to the $10,000 cap. The development of state elective PTE tax regimes has accelerated in 2021 in response to the issuance of Internal Revenue Service guidance endorsing this practice. We will discuss how the advent of elective state PTE tax regimes could dramatically change how PTE businesses and their owners report their state tax obligations, and the analysis that will need to be undertaken by PTE enterprises prior to making these elections.
- Define developments that led to the proliferation of elective PTE tax regimes
- Describe how the new wave of elective PTE taxes work and their potential benefits to PTE owners
- Identify differences in elective PTE tax regimes, along with potential logistical issues and modeling challenges
Please note: CPE credits are not awarded for webcast replay
Recommended Field of Study:
- Mark Arrigo, Partner, SALT National Managing Partner, Grant Thornton LLP
- Jamie Yesnowitz, Principal, SALT Leader-Washington National Tax Officer, Grant Thornton LLP
- Saylor Sims, Principal, SALT, Grant Thornton LLP
- Michael Jackson, Partner, Privately Held Business, Grant Thornton LLP
- Tom Coley, Principal, SALT, Grant Thornton LLP
Group - Internet
If you have any questions or encounter any difficulties while enrolling, please contact technical support via email at webcastCOE@us.gt.com
, or visit our webcasting frequently asked questions page
If you are experiencing problems viewing or listening to an event, please review the event help guide
that provides minimum requirements and frequently asked questions.