Articles & Alerts
Don’t Miss Your Chance to Elect into New York State’s PTE Tax for 2021
Passed earlier this year in April 2021, New York’s elective Pass-Through Entity Tax (“PTE tax”) is intended to help taxpayers circumvent the $10,000 federal limitation on state and local tax deductions, which was implemented under the Tax Cuts and Jobs Act of 2017. Since the new state income tax is imposed directly on a Pass-Through Entity, the taxes paid are fully deductible by the entity for federal income tax purposes and not limited by the $10,000 cap, which does not apply to business entities. In addition, electing Pass-Through Entities provide their owners with a credit to be utilized on their New York State income tax return equal to such owners’ appropriate share of the tax paid by the business.
This new tax permits a business to elect into the regime on an annual basis. For taxpayers desiring to elect into the PTE tax for 2021, elections are due by Friday, October 15, 2021.
Have you evaluated whether electing into this tax is right for you?
If it is, you don’t want to miss the deadline to save a significant amount of money for 2021. See the links below for earlier articles on this new tax, and be sure to contact your Anchin Relationship Partner for more information.