Overview
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SALT deduction cap workarounds
3 mins
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Different state PTE wrkarounds
14 mins
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Tentative minimum tax
25 mins
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Other California considerations
63 mins
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Sale of stock when NR
80 mins
Course Description
The TCJA imposes a $10,000 limitation for deducting state and local taxes. California has finally joined a growing list of states that have implemented a workaround using pass-through entities in order to minimize the impact of the limitation.
For taxable years 2021 through 2025 AB 150 allows qualified pass-through entities to pay and deduct a pass-through entity tax. AB150 also increases funding for various business tax credits and additional stimulus payments.
All flow-through entities that are qualified entities can elect to pay the CA PTET. Flow-through entities include S corporations, limited liability companies, limited liability partnerships, or limited partnerships (hereinafter “qualified entities”). General partnerships also meet the qualifications for the CA PTET election. Stand-alone disregarded entities and corporations are precluded from electing to pay the tax, but having such entities as partners/shareholders do not preclude an otherwise qualifying entity from being able to elect into paying the CA PTET.
Your clients are asking if they should consent or not consent to the Passthrough Entity Tax election. Should they?
Find out in this IRS Approved CPE/CE tax webinar as Lawrence Pon will cover the following major topics:
- Pass-through entity tax election
- Pass-through entity tax calculation
- Pass-through entity tax payments
- Pass-through entity tax credit
Learning Objectives
- To Identify qualified pass-through entities.
- To explain the timing issues regarding electing and paying.
- To describe how to apply this new law to our clients.
- To discuss which clients cannot take advantage of AB150.
- To review the business tax credits and stimulus payments from California.
Recommended For
- The IRS-approved CE course is recommended for CPAs, EAs, CTECs, AFSPs, and Tax Professionals practicing in California or engaged in advising clients in California.
Who Should Attend?
- Annual Filing Season Program
- California Registered Tax Professional
- CPA (Industry)
- CPA - Mid Size Firm
- CPA - Small Firm
- Enrolled Agent
- Maryland Tax Preparers
- Oregon Tax Preparers
- Tax Firm
- Tax Managers
- Tax Practitioners
- Tax Preparer
- Tax Professionals
- Young CPA