Exceptional Income Management Pass-Through Entities and IRS Compliance

Proposed regulations that will clarify that State and local income taxes imposed on and paid by a pass-through entity are allowed as a deduction. Intuitively, if a passthrough entity pays PTE taxes on business income, the character of the SITP deduction should be the same character as ... A foreign entity that is a flow-through entity is a payee with respect to a payment (other than income effectively connected with the conduct of a US trade or ... These groups are not subject to the corporate income tax; instead, income is "passed through" onto the income tax returns of the individual or ... Therefore, in order to achieve their desired federal tax results for 2021, PTEs may have to pay PTE Excise on income that was already taken into account in ... ... income (loss) covered by the election pursuant to the provisions of the Pass-Through Entity Act of 2019. Provide a schedule listing the electing PTE, federal ... For taxable years beginning after December 31, 2022, partnerships and S corporations may elect to pay Hawai'i income taxes at the entity level. Eligible members ... Those income taxes can then be fully deducted for federal tax purposes by the entity. The deduction is passed through in the distributive share ... 1 What is the new Electing Pass-Through Entity (EPTE) Income Tax that has been enacted in 2022? The legislation allows an individual to claim a credit for taxes paid to other states under laws that are substantially similar to the pass-through entity ...