Pass Through Entity Tax

[Snaggletooth]

Various schemes to defeat the SALT limitation have tried and failed. But for those who have an "Entity", this appears to work. A subchapter S, a partnership, or some other 1041 entity which normally would have zero tax on the entity itself - may not voluntarily pay a state tax which results in a tax credit on the recipients account.

Several states have this. Tennessee cannot have it because they have no tax on the individual.

[Rapid Robert]

Yes, another tax break (PTEET) that mostly benefits the wealthy. How the IRS decided this was consistent with the TCJA law, I'll never understand.

PTEET = Pass Through Entity Elective Tax

[FEDUKE404]

Very few of my clients have to deal with SALT issues, and those that do often have multiple real estate ownership.
Of course, not having any clients from CA or NY helps immensely.
Also the fairly generous standard deduction often makes SALT a non-issue in the first place.

[Snaggletooth]

[QUOTE= How the IRS decided this was consistent with the TCJA law, I'll never understand.

It could be that the IRS has not blessed the scheme. Wonder if the tax court has had an opportunity to rule on it...

[terryats]

Here is a good article on the SALT. https://www.thetaxadviser.com/issues...elections.html