Date: June 4th, 2026

Time: 2pm ET | 1pm CT | 12pm MT | 11am PT

Duration: 120 minutes

Description:

Over the last several years, many states have rolled out Pass‑Through Entity Tax (PTET) regimes as a sophisticated workaround to the federal 10,000 SALT deduction cap. By allowing partnerships, S corporations, and certain LLCs to pay state income tax at the entity level, these elections effectively convert state taxes into deductible business expenses and let qualifying owners capture federal tax benefits that would otherwise be blocked on Schedule A.

But the opportunity comes with complexity. PTET rules differ widely by state in eligibility, election deadlines, payment timing, credit mechanisms, and treatment of nonresident and multistate owners, and a poorly modeled election can actually increase a client’s overall tax or create double‑taxation risk. Advisors must navigate a patchwork of requirements, from states that demand early installment payments or in‑year elections to nuanced limitations on resident credits for PTET paid to other jurisdictions.

This webinar delivers a practical, practitioner‑focused deep dive on PTET elections in the current post‑SALT‑cap environment. You’ll learn how PTET works as a planning tool, how the economics play out under the new higher SALT cap and future reversion rules, and when an election truly benefits a specific entity and owner mix. We will walk through key state‑level variations, model common fact patterns (single‑state vs. multistate, resident vs. nonresident owners, QBI interactions), and highlight situations where PTET may backfire despite its apparent advantages.

Through real‑world case studies and interactive discussion, you’ll see how to evaluate PTET elections step‑by‑step, document your analysis, and coordinate elections with estimated payments, owner credits, and financial statement presentation. Participants will leave with a clear framework, practical checklists, and implementation tips to help clients capture PTET benefits confidently while avoiding common traps in multistate and high‑income scenarios.

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

Jane 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.