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State Taxation of Pass-through Entities and SALT Cap Workaround

  • Accountant
  • AFSP
  • CRTP
  • CPA (US)
  • EA
  • ORTP
  • MRTP
  • CFIRS
  • CWS

Published: October, 2021

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  • Course Description
  • Course Qualification
  • Presenter
  • FAQ

Course Description

Overview

  • Tax cuts & jobs act (TCJA)
    2 mins
  • Who bears the burden?
    9 mins
  • Individual income tax base
    12 mins
  • Pass-Through entity withholding tax
    23 mins
  • PTE-Election considerations
    36 mins
  • SALT cap workaround caution!
    45 mins

Course Description

As part of the Tax Cuts and Jobs Act (TCJA), the federal deduction for state and local taxes was limited to $10,000 for a married couple filed jointly. States, particularly those with high taxes, almost immediately started working on mechanisms to help their high-income residents and small business owners avoid this limitation. In November 2020, IRS Notice 2020-75 was published allowing Pass-Through Entities (PTE) to deduct certain state income taxes directly imposed on the PTE, even when such taxes are imposed based upon an election and the PTE’s owners are entitled to a state tax credit. Following this IRS Notice, many states have jumped on board by enacting elective PTE taxes that allow owners of these businesses to avoid the $10,000 federal deduction limitation. These state laws will have a significant effect on federal income tax revenue and set the stage for a showdown in Congress concerning the possible repeal of the SALT deduction limitation.

This online CPE/ CE course will take you through some of the similarities and differences of these taxes and some of the questions arising as these new taxes are implemented. We will also look at recent IRS guidance on the federal deduction for the PTE taxes to examine the potential federal tax benefits of these SALT deduction workarounds.

Major topics covered in this online CPE/CE webinar:

  • Pass-through entities
  • State taxable income
  • Other entity-level taxes
  • New PTE level taxes to circumvent the SALT CAP
  • Recent developments

Learning Objectives

  • To determine general structure of state income taxes imposed on Pass-through Entities (PTE) and their owners. 
  • To discuss detailed analysis of SALT Cap Workaround statutes enacted by many states. 
  • To describe requirements and consequences of electing to impose state income taxes at PTE level. 
  • To discuss the effect of SALT Cap Workaround on PTE owners and income tax revenue.

Recommended For

  • This online IRS approved CE course is recommended for CPAs, EAs, AFSPs, and Other Tax Professionals involved in advising their clients on pass through entity taxation matters and its shareholders or partners

Who Should Attend?

  • Accountant
  • Accounting Firm
  • Annual Filing Season Program
  • Bookkeepers & Accountants & Tax Preparers
  • California Registered Tax Professional
  • Certified Public Accountant (CPA)
  • CPA (Industry)
  • CPA - Mid Size Firm
  • CPA - Small Firm
  • Enrolled Agent
  • Maryland Tax Preparers
  • Oregon Tax Preparers
  • Staff of Accounting Firm
  • Tax Attorney
  • Tax Firm
  • Tax Managers
  • Tax Practitioners
  • Tax Preparer
  • Tax Professionals
  • Tax Pros

Course Qualification

Webinar Qualifies For

  • 1 CE Credit of Federal Tax Law Update for Enrolled Agents (EA) (Approval No. GEHNZ-U-00618-21-S)
  • 1 CPE Credit of Taxes for Certified Public Accountants (CPA-US)
  • 1 CE Credit of Federal Tax Law Update for California Registered Tax Preparers (CRTP) (Approval No. 6273-CE-0590)
  • 1 CE Credit of Federal Tax Update for Annual Filing Season Program (AFSP)
  • 1 CE Credit of Federal Tax Law Update for Oregon Registered Tax Preparers (ORTP) (Approval No. GEHNZ-U-00618-21-S)
  • 1 CE Credit of Federal Tax Law Update for Maryland Tax Preparer (MRTP) (Approval No. GEHNZ-U-00618-21-S)
  • 1 CE Credit for Certified Fiduciary & Investment Risk Specialist (CFIRS)
  • 1 CE Credit for Certified Wealth Strategist (CWS)
  • 1 General Credit of Taxes for Accountant/Bookkeeper/Tax Professionals

Additional details

  • Course Level :
    Basic
  • Credits :
    1
  • Instructional Method :
    QAS Self Study
  • Pre-requisites :
    None
  • Advance Preparation :
    None

IRS APPROVED

MY-CPE LLC, 1600 Highway 6 south, suite 250, sugar land, TX, 77478

MY-CPE LLC (Sponsor Id#: GEHNZ) has entered into an agreement with the Internal Revenue Service, to meet the requirements of 31 Code of Federal Regulations, section 10.6(g), covering maintenance of attendance records, retention of program outlines, qualifications of instructors, and length of class hours. This agreement does not constitute an endorsement by the IRS as to the quality of the program or its contribution to the professional competence of the enrolled individual. Credit earned by attendees with a PTIN will be reported directly to the IRS as required of all providers. To ensure your CPE hours are reported, update your profile in My Account to include your PTIN number. Please note: IRS CE is only mandatory for EAs and ERPAs. For all other tax return preparers, CE is voluntary.

NASBA APPROVED

MY-CPE LLC, 1600 Highway 6 south, suite 250, sugar land, TX, 77478

MY-CPE LLC (Sponsor Id#: 143597) is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.NASBARegistry.org.

CTEC APPROVED

MY-CPE LLC, 1600 Highway 6 south, suite 250, sugar land, TX, 77478

MY-CPE LLC (Sponsor ID# : 6273) has been approved by the California Tax Education Council to offer continuing education courses that count as credit towards the annual “continuing education” requirement imposed by the State of California for CTEC Registered Tax Preparers. A listing of additional requirements to register as a tax preparer may be obtained by contacting CTEC at P.O. Box 2890, Sacramento, CA, 95812-2890, toll-free by phone at (877) 850-2832, or on the Internet at www.ctec.org.

Presenter

About Presenter

Richard Fry

Partner, Buckingham

I am a business tax attorney who provides clients with trusted advice concerning significant transactions, tax planning, and difficult challenges encountered in their daily operations. My practice is focused on state and local tax compliance and controversies, including Ohio and multistate sales/use tax, commercial activity tax, and personal income tax issues. Additionally, I represent client in negotiating and drafting agreements for commercial and real estate transactions, and in federal income tax controversies with the Internal Revenue Service. 

Because of my tax background, I often advise clients on the business and tax implications related to their corporate structure and significant transactions. I take pride in understanding my clients' business needs and objectives so I can help them achieve their goals in the most beneficial, yet practical, manner. 

Also, as former Chair of the Ohio State Bar Association Taxation Committee, I have been asked to present my opinion concerning tax laws and policy to Ohio legislatures on behalf of the Bar Association. These opportunities have given me invaluable insight into the legislative process and the practical considerations that mold tax policy.

About Company

Buckingham

www.bdblaw.com/

Buckingham, Doolittle & Burroughs, LLC is a corporate law firm that counsels middle-market executives and business leaders all over Ohio and beyond. With offices in Cleveland, Akron and Canton, Ohio, Buckingham offers clients sophisticated and practical legal services. Serving the region for more than 100 years, Buckingham’s mission is to deliver meaningful experiences through the practice of law, exceed expectations in terms of service, counsel and business sense, and to offer continuous value to the industries, communities and clients they serve.

Faq

FAQs content

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Ratings and Review

4.5

393 Ratings

Excellent

226

Very Good

128

Average

37

Poor

1

Terrible

1

JB

Jeffrey Beardsley, EA

Aug 5th, 2021

Raymond Fry made a cohesive and coherent presentation in one hour of material that generally makes me want to go watch paint dry! I enjoyed his presentation and his manner.

OO

Olufemi Okusolubo, EA

Aug 24th, 2022

Richard Fry gave very valuable information during his presentation, which any tax practitioner will find very useful.

NW

Nadine Wagner-bartak, EA

Aug 5th, 2021

I really enjoyed this course. It was the right amount of time for the material and I found it very informative.

RC

Rachel Cua, CPA (US)

Jun 15th, 2022

Great instructor! Explanations and additional background information to build on concepts were great.

DL

Davis Le, CPA (US)

Sep 28th, 2021

Very useful information with some important pitfalls and items to consider and work around

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