Date: November 21th , 2025

Time: 1pmET | 12pm CT | 11am MT | 10am PT

Duration: 120 minutes

Description:

Over the past few years, many states have adopted Pass-Through Entity Tax (PTET) elections as a strategic workaround to the federal $10,000 cap on state and local tax (SALT) deductions. These elections allow pass-through entities—such as partnerships, S corporations, and LLCs—to pay state income taxes at the entity level, thereby enabling business owners to indirectly deduct these payments on their federal returns.

However, while the PTET election can result in significant tax savings, it is also laden with complex compliance requirements, differing state-by-state rules, and intricate planning factors that must be carefully evaluated.

This webinar provides a comprehensive, practitioner-focused analysis of PTET elections. Our expert presenter will explain how these elections function, outline the procedural and reporting nuances that vary across states, and illustrate how to determine whether a PTET election is beneficial for a particular client or entity.

Through real-world examples and interactive discussion, attendees will learn practical tax planning strategies, examine state-level variations, and gain valuable insights into documentation, calculation, and filing best practices. Participants will leave the program equipped with actionable tools to implement and manage PTET elections effectively while steering clear of common traps.

Topics Covered:

• Overview and historical background of SALT deduction limitations under federal law
• Legislative development of state-level PTET regimes and their policy purpose
• State taxable income
• Election mechanics: when and how pass-through entities can make the PTET election
• Other entity-level taxes
• Calculation of entity-level tax and its impact on federal income reporting
• New PTE level taxes to circumvent the SALT CAP
• Comparison of PTET rules across major adopting states, including threshold requirements and filing timelines
• Coordination of PTET payments and credits between the entity and owners
• Multistate tax implications for entities operating in more than one jurisdiction
• Documentation standards, estimated payments, and state-specific compliance procedures
• Common pitfalls, case studies, and IRS guidance on federal deductibility
• Planning opportunities, timing considerations, and strategies for maximizing tax benefits
• Recent developments

Learning Objectives

• Explain the purpose and operational structure of PTET elections as a response to the federal SALT deduction cap.
• Identify which states currently offer PTET elections and analyze the differences in their tax rates, eligibility rules, and election processes.
• Evaluate the advantages, limitations, and risk factors involved in making or advising on a PTET election.
• Determine how PTET elections influence both entity-level and owner-level tax reporting at the federal and state level.
• Apply best practices for electing, documenting, and maintaining compliance with PTET regimes across various states.

Credits and Other information:

• Recommended CPE credit – 2.0
• Recommended field of study – Taxes
• Session Prerequisites and preparation: None
• Session learning level: Update
• Location: Virtual/Online
• Delivery method: Group Internet Based
• Attendance Requirement:  Yes
• Session Duration: 120 minutes

Who Will Benefit:

• CPA
• Enrolled Agents (EAs)
• Tax Professionals
• Attorneys
• Other Tax Preparers
• Finance professionals
• Financial planners

About Our Speaker

Jane Ryder, EA, CPA, is a nationwide professional educator.She writes and speaks on many income tax, business compliance, accounting, and tax representation topics.Jane has been providing tax preparation, accounting services, and tax collection resolution services since 1980.
She runs her San Diego CPA firm, Brass Tax Ryder Professional Group, Inc., and consults with colleagues on tax matters, audits, and business planning.