NYS PTET – Considerations for Business and Personal Taxes

Learning Objectives

• To identify which entities are eligible to opt-in for the NYS PTET.
• To review how the NYS PTET can benefit the partnerships and S-Corps' members and shareholders.
• To know how to report the NYS PTET tax payments in the partnerships and S-Corps' federal income tax returns.
• To analyze the calculation for NYS PTET payments.
• To discuss important NYS PTET deadlines.

Course Description

The PTET is an optional tax that New York State partnerships and S corporations may elect to pay on certain income for tax years. Eligible entities will be able to deduct the PTET paid in their federal income tax returns, which reduces the net income that flows through to the individual partners, members, and shareholders' taxable income. This allows shareholders or partners of the partnerships or S Corps to circumvent the $10,000 cap on individual SALT deductions.

A deduction for state or local taxes paid at the PTE level reduces the amount of federal net income flowing through to individual partners, members, and shareholders, effectively giving them the benefit of a deduction of state and local taxes that is not limited by the SALT cap. A credit for the PTET paid is claimed in the New York State personal income tax return, which avoids duplication of taxes paid at the state level as a result of the PTET.

The PTET applies to tax years beginning on or after January 1, 2021. PTEs must make the irrevocable election to be subject to the PTET annually by March 15 of the tax year for which the election is made. The election can be made on a year-by-year basis. Estimated PTET payments must be made every quarter. Annual returns for calendar year filers are due by March 15 following the close of the taxable year, and annual returns for fiscal year filers are due by March 15 following the close of the calendar year that contains the final day of the entity's taxable year.

This CE Tax webinar will cover the following:

• New York State's Pass-Through Entity Tax (PTET) as we approach the deadline to opt-in for 2023 and follow the PTET tax return for 2022
• Eligibility and benefits 
• How to calculate estimated tax payments?
• How to claim the PTET credit in the personal income tax return?
• Resources to calculate the PTET tax and file the tax return

Join this online course to identify qualified pass-through entities and understand the benefits eligible to partner/shareholder/member on their return. 

Overview

• Who can claim the PTET credit?

  6 mins
• Calculating estimated PTET payments

  12 mins
• Reporting the PTET payments in federal business return

  18 mins
• Other stats with PTET

  27 mins
• Qualified Pass - Through entities

  41 mins