NYS Pass-Through Entity Tax Reminder
As discussed in our posts on September 9, 2021, August 26, 2021 and June 3, 2021, New York State has created an optional pass-through entity tax which can be used as a workaround for owners of pass-through entities that are affected by the $10,000 federal limitation on the itemized deduction for state and local taxes (often referred to as the SALT cap). The optional tax is effective for tax years beginning on or after January 1, 2021.
The due date for entities to make the election to be subject to the optional tax for the 2021 tax year is October 15, 2021. See our earlier posts for the logistics of the election.