Pass-Through Entity Tax for New York State and New York City -- a great tax savings tool but has additional reporting responsibilities.
Yoseph Shomer, CPA
CPA for all your business tax needs | Professional. Patient. Personal.
The Pass-Through Entity Tax for New York State and New York City is a great tax savings tool but has additional reporting responsibilities and requires a layout of funds.
The PTET is an optional tax that businesses pay, which lowers the business’s taxable income for federal purposes, and serves as a credit on the personal tax return of the owner.
Below are some points regarding the NYS and NYC PTET for 2024:
? The PTET requires quarterly estimated tax payments throughout the year at 25% of the annual tax liability due on 3/15, 6/15, 9/15, and 12/15.
? A separate stand-alone business PTET tax return is required to be filed with the State/City as well.
? The owners' tax credit must be added to their personal return.
Although the cash outlay and additional reporting requirements are a drag, overall, it’s well worth it and a win-win!
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