It’s a jungle out there. We tax practitioners are expected to hack through it. With a machete or whatever else we can come up with.

The Tax Cuts Jobs Act (TCJA) severely limited the income tax deductibility of state and local taxes. In response, state legislatures enacted workaround legislation: state and local Pass-Through Entity Taxes (PTET).

TaDah!! PTET taxes paid at the pass-through entity (partnership or S Corporation) (PTE) level magically become deductible above-the-line as trade or business expenses. Yet, at the same time, such taxes (in most cases) credit against the PTE owner’s individual income tax liability.

So, what could possibly go wrong? Tune into our new course to find out in what circumstances making a PTET election is a great idea and when it is a disaster.

Highlights:

1. Survey of the 46 jurisdictions with PTET legislation and the six that don’t (yet) (4 states new in 2023 and at least 3 more expected)
2. Do’s and don’ts on making the PTET election
3. Seven (at least) reasons to not make a PTET election
4. Upsides and downsides of it all – Checklists, checklists, checklists
5. Two tier analysis as to whether to elect: The thinking process
6. Timing, timing, timing – Cash vs. accrual and all the hoopla over deducting PTET in a prior year
7. Sticky wickets in the event of S Corps, trusts (or estates) or C Corps as owners of PTEs
8. Risk of making PTET election: Double state taxation
9. No second chances on making a PTET election: Except for states that allow amended returns
10. Tax benefit rule and whether refunded PTETs are taxable
11. PTEs operating in multiple states: Let the excitement begin
12. Special basis adjustment issues for state vs. fed
13. SALT deductibility through 2025, AMT and whether PTETs are permanent
14. Introductory thoughts on presenting PTET on financial statements
15. A keen look at existing guidance from IRS and the likely future of it all

Reaching into IRS’s pocket to avoid the SALT deduction cap is a great idea. However, it’s not a great idea every time. Tune into our new course to put yourself into the driver’s seat as to whether to elect PTET or not.

Presenter: Bradley Burnett

Bradley Burnett, J.D., LL.M., is a practicing Colorado tax attorney with 40 years of tax practice experience.  His practice emphasis is on tax planning and tax controversy resolution.  He also prepares a handful of tax returns.

Mr. Burnett has delivered more than 3,000 presentations on U.S. tax law throughout all fifty U.S. states, Washington, D.C., the Bahamas, Italy, Greece, Turkey, and Canada. He has authored texts of 35 CPE courses.  He has appeared on television answering tax questions for call-in viewers of Denver NBC affiliate KUSA Channel 9.  Brad received the Illinois Society of CPAs Instructor Excellence Award for teaching in Chicago and five times has been the top-rated, most requested instructor for CPA Society annual tax conferences.

Burnett’s seminar style is to deliver the subject matter in briskly paced, enthusiastic and witty fashion.  His forte’ is the candid communication of practical ideas relating to tax law.

Host: Rick Telberg

• Founder and CEO CPA Trendlines, Bay Street Group
• Accounting Today Top 100
• CPA Practice Advisor Top 25

Host: Sandi Leyva

• Founder Accountant’s Accelerator, Leyva Learning LLC
• CPA Practice Advisor Top 25
• Most Powerful Women in Accounting