11.28.2023 - SALT Cap
How Clients can Navigate the SALT Cap
Presented by Larry Pon, CPA,
The Tax Cuts and Jobs Act limited the State and Local Tax (SALT) deduction to $10,000. This means our clients who pay significant amounts of property taxes and state income taxes do not get the benefit of the SALT taxes that they do pay. However, if your client is a shareholder in an S-corporation, partner in a partnership, or member of a Limited Liability Company (LLC), they may be able to take advantage of the Pass Through Entity Tax (PTE) Credit and Deduction. In this webinar, we reviewed the qualifications, mechanics, and planning opportunities with this workaround the SALT Limitation.
Attendees Comments:
A few comments from listeners when asked what they learned during the webinar:
Great up-to-date information. Maybe the most important Slide is the one that talked about the negative effects on other deductible items. It shows exactly where to look when you run the scenarios.
- Patrick K.
The comparison chart between sole proprietor and S-corp was very effective in illustrating the savings of a PTE
- Frank V.
Understanding what constitutes a "Qualified PTE".....Understanding the flexibility & many differences between varying states concerning election & payment rules.....Understanding the potential tax savings by converting to an S-Corp or Partnership (at least in the state of CA.
- Darian D.
Using pass through's can help my higher net worth clients mitigate and eliminate taxes.
- Robert D.
PTET, was not familiar with the workaround
- David G.
PTEs and ability to pay Ca taxes; unfortunately, taxes needed to be paid by 11/15 for 2023. So, can only start using this strategy in 2023.
- Marian J.
Importance of making payment by December 31st in order to get tax deduction on 2023 personal tax return
- Thomas R.
Great up-to-date information. Maybe the most important Slide is the one that talked about the negative effects on other deductible items. It shows exactly where to look when you run the scenarios.
- Patrick K.
The comparison chart between sole proprietor and S-corp was very effective in illustrating the savings of a PTE
- Frank V.
Understanding what constitutes a "Qualified PTE".....Understanding the flexibility & many differences between varying states concerning election & payment rules.....Understanding the potential tax savings by converting to an S-Corp or Partnership (at least in the state of CA.
- Darian D.
Using pass through's can help my higher net worth clients mitigate and eliminate taxes.
- Robert D.
PTET, was not familiar with the workaround
- David G.
PTEs and ability to pay Ca taxes; unfortunately, taxes needed to be paid by 11/15 for 2023. So, can only start using this strategy in 2023.
- Marian J.
Importance of making payment by December 31st in order to get tax deduction on 2023 personal tax return
- Thomas R.
Great up-to-date information. Maybe the most important Slide is the one that talked about the negative effects on other deductible items. It shows exactly where to look when you run the scenarios.
- Patrick K.
The comparison chart between sole proprietor and S-corp was very effective in illustrating the savings of a PTE
- Frank V.
Understanding what constitutes a "Qualified PTE".....Understanding the flexibility & many differences between varying states concerning election & payment rules.....Understanding the potential tax savings by converting to an S-Corp or Partnership (at least in the state of CA.
- Darian D.
Using pass through's can help my higher net worth clients mitigate and eliminate taxes.
- Robert D.
PTET, was not familiar with the workaround
- David G.
PTEs and ability to pay Ca taxes; unfortunately, taxes needed to be paid by 11/15 for 2023. So, can only start using this strategy in 2023.
- Marian J.
Importance of making payment by December 31st in order to get tax deduction on 2023 personal tax return
- Thomas R.