kathyc2 Posted January 19, 2023 Report Share Posted January 19, 2023 IN has a bill in the works that would allow pass through entities to make an election to pay state tax at the corporate level. The shareholders would then receive it as a refundable tax credit to use on their individual returns. They are saying that state tax paid by S would be a deduction for federal tax. Since it's an election i.e. voluntary, how could it possibly meet the Sec 162 "necessary" requirement? Do any other states do this? Quote Link to comment Share on other sites More sharing options...
Lee B Posted January 19, 2023 Report Share Posted January 19, 2023 The number of states with a PTET is over 25 now. Here is a link to a recent analysis of the situation in The Tax Advisor: https://www.thetaxadviser.com/issues/2022/aug/state-pte-elections.html Quote Link to comment Share on other sites More sharing options...
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