Tax Planning for CA PTET SALT Workaround

Description

Almost 40 states have passed PTET election legislation providing substantial federal tax savings for many partners and S corp shareholders. In addition to the deductible state taxes at the entity level, PTET also lowers federal AGI for the purposes of allowing more rental losses, QBI deductions, tuition credits and more. We'll also cover valuable tax planning moves including critical tax planning timing to maximize the benefits from a PTET election. Missing these PTET elections can result in increased exposure for tax preparers also, which we will address.

Learning Objectives

1.Learn the fundamentals of CA PTET elections and federal tax savings.

2. Develop tax planning and tax plan timing schedules for PTET clients.

3. Understand how to report a CA PTET payment on the entity K-1 for partners and S corp shareholders.