Pass-Through Entities Update

Pass-through entity (“PTE”) guidance has rapidly been changing state-by-state since the IRS issued Notice 2020-75 on November 9, 2020. After that notice was released, almost 30 states have passed new PTE related legislation. With this developing landscape, we turn to Cathie Stanton, a Tax Partner and national leader of the firm’s State & Local Tax practice, and Tony Konkol, a Strategic Tax Manager, to share their latest PTE insights with Brooks Nelson and Sarah McGregor on this addition of the Tax Beat Podcast.

In this edition of our Podcast, our knowledgeable leaders discussed:

• 4:55 - Why Have There Been Fast Changes to PTE Taxation?
• 9:26 - Credit Method and Income Reduction Definitions 
• 12:32 - Issues and Considerations When Implementing a PTE Election
• 22:02 - What Makes a Good Candidate for PTE Election?
• 23:23 - Key To-Do’s for PTE Election

If you have any questions specific to your business needs, Cherry Bekaert’s State & Local Tax advisors are available to discuss your situation with you.

Additional Resources

Article: The Growing Trend of Pass-Through Entity SALT Cap Workarounds

Brochure: Pass-Through Entity Tax Services

Article: Pass-Through Entity Considerations for the Real Estate Sector 

Podcast: Avoiding the SALT Cap with Pass-Through Entity Taxation (October 2021)

Podcast: How Supply Chain Changes Impact Your State and Local Taxes