"Continued Developments in the SALT Cap Workaround”

Thu Lam's article "Continued Developments in the SALT Cap Workaround” in New Jersey Society of Certified Public Accountants Focus Blog

In an article published in New Jersey Society of Certified Public Accountants Focus Blog on April 10, 2024, Philadelphia-based Senior Counsel Thu Lam discussed the federal state and local tax (SALT) deduction limitation and the pass-through entity tax (PTET) activity from state taxing authorities.

“Under state PTET regimes, eligible pass-through entities, such as partnerships and S corporations, may elect to pay state income tax at the entity level,” wrote Lam.

“As of November 2023, 36 states and New York City all have PTETs in one form or another. Of these 36 states, Hawaii, Iowa, Kentucky, Montana, Nebraska and West Virginia became the latest states to implement their own state PTETs in 2023 alone. In addition, Maine, Pennsylvania and Vermont currently have proposed PTE legislations,” explained Lam.

To learn more, you may view the full article here.