• CE: 1 IRS & 1 CTEC credit
• Speaker: Allan (AJ) Reynolds, EA

December 22, 2017 the Tax Cuts & Jobs Act (TCJA) passed and imposed a $10,000 limitation on the deduction of state and local taxes (SALT) for tax years 2018 through 2025.

November 9, 2020 IRS issued Notice 2020-75, which announced rules regardingclarification that state and local income taxes imposed on and paid by Pass-Through Entities will be allowed as an ordinary and necessary deduction in computing its non-separately taxable income or loss for the taxable year of such payment. Hence, these payments will not be subject to the SALT limitations.

The course will present tax professionals with up-to-date valuable knowledge on this PTET and how these rules impact their clients who operate pass-through entities (PTE).

Learning Objectives:

• Evaluate the provisions of Notice 2020-75.
• Analyze rules regarding specified income tax payments (SITPs).
• Importance of ensuring your PTE to advantage of PTET elections.
• Overview of what states do and do not have a PTET.
• Examine which entities can take advantage of these rules.
• Extrapolate how PTET can provide other tax savings.