Understanding Pass-Through Entity Taxes On-Demand Webinar

Summary

Numerous states have created a rule that allows pass-through entities (partnerships and S corporations) to assume responsibility for and pay state tax liabilities on behalf of partners or shareholders. Since the entity is paying the tax, the shareholder or partner receives a credit on their state return. In addition to a federal impact on the return for this decision. Because of this fact, the PTE law is sometimes referred to as the state and local tax (SALT) workaround to avoid the $10,000 deduction limitation on their individual returns. This webinar will cover what you need to handle the credits on your clients’ federal and state tax returns.

Objectives

Upon completion of this course, you will be able to:

• Identify and locate PTE credits for individual taxpayers on Schedules K-1
• Determine the impact and responsibilities on the entity for following this process
• Access tools to discover which states have PTE legislation in place, and understand when and where compliance is voluntary or required
• Evaluate benefits and potential drawbacks for making a PTE election (where voluntary) for both the entity and the partners or shareholders

Course Details

This on-demand webinar includes the presentation slides, exam questions, recording of the webinar broadcast with review questions, and attendee top questions. CPE is issued after exam is successfully completed.