Understanding the New York State PTET: What Rochester Business Owners Need to Know
The Pass-Through Entity Tax (PTET) is a relatively new option for New York businesses. As Enrolled Agents specializing in both federal and state taxation, we at Redwood Tax and Consultants LLC want to ensure Rochester business owners understand this tax election:
What is PTET?: It's an optional tax that partnerships or S corporations can elect to pay on behalf of their partners or shareholders.
Benefits: It can help partners or shareholders work around the $10,000 SALT deduction limit on federal returns.
Who Should Consider It?: Businesses with high-income owners who itemize deductions may benefit most.
Deadlines: Know the important dates for electing and paying PTET.
Complexities: PTET interacts with other tax rules in complex ways. Professional guidance is crucial.
Our partner-level consulting on complex issues like PTET is available at $170 per hour. We can help you determine if PTET is right for your business and guide you through the election process.
