Tag: pass-through entity

Updated August 14, 2024 What is a Pass-through Entity Tax? The Tax Cuts and Jobs Act of 2017 (TCJA) imposed a $10,000 limitation on the state and local tax (SALT) deduction for individuals who itemize deductions on their federal income tax return for tax years beginning after 2017 and before 2026. In response, many states have enacted a mandatory or elective pass-through entity (PTE) tax as a workaround to the SALT cap. The PTE tax allows eligible pass-through entities to… Read more ›