Update on State PTE Tax Elections

A recent post discussed how many states are providing options for pass-through entities (S corporations, partnerships, or LLCs treated as S corps or partnerships for federal income tax purposes) to allow them to elect to pay state income taxes at the entity level.

Indiana is the latest state to enact a new pass-through entity (PTE) tax regime as a workaround to the federal state and local tax (SALT) limitation. The election has a retroactive effective date of January 1, 2022. Pennsylvania remains one of just seven states that have yet to enact a PTE tax election. Click here to view a resource map from the AICPA detailing where each state currently stands in regard to PTE elections.

GYF will continue to monitor any legislative progress in Pennsylvania and provide updates as available. Please contact our professionals at 412-338-9300 if you have questions or need assistance with PTE elections or other tax issues.

Related Post:

Understanding the SALT Deduction and PTE Tax Elections

Dan Oberst

Dan Oberst

Dan has nearly 10 years of tax experience. He specializes in providing tax compliance and research services to individual and business clients, primarily in the manufacturing and service industries. Dan also engages in special project work, providing fixed asset analysis and handling various state tax issues.

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