EP10 - Pass-Through Entity Tax: How Creatives Turn State Taxes Into Federal Deductions

EP10 - Can You Really Turn State Taxes Into a Federal Deduction Unlock the Pass-Through Entity Tax LoopholeNavigating Pass-Through Entity Taxes for Creative BusinessesIn this episode of Let's Get Fiscal, hosts Anastasia Maisha and Danielle discuss the intricacies of pass-through entity taxes. They explain how these taxes work, the benefits of using them to deduct state income taxes on federal returns, and the recent legislative changes that impact them. The episode stresses the importance of planning and sometimes seeking professional help to maximize tax benefits and avoid penalties. Listeners will learn how to strategize their tax payments to optimize deductions and manage their business finances more effectively. The episode also highlights key federal and state deadlines and the difference between itemized and standard deductions.00:00 Introduction to Federal Tax Incentives00:42 Understanding Pass-Through Entity Tax (PTET)01:04 How PTET Works for Businesses03:33 The SALT Cap and Its Implications06:22 Workarounds and IRS Interpretations09:35 Understanding Tax Return Deadlines10:20 Itemized vs. Standard Deductions11:57 Pass-Through Entity Tax Considerations13:49 State-Specific Tax Election Deadlines16:37 Professional Assistance and Final Thoughts🔗 Helpful Links & Resources📬 Got a question for the show?Submit it here: https://www.coterietax.com/qa🎧 Want to listen to more episodes?Catch the latest episodes at: https://www.coterietax.com/podcast📊 Need personalized help with your business finances?Learn more about working with Anastasia and Myiesha: https://www.coterietax.com