politics

NY/NYC PTE Election, Benefits and Timing

Cindy Yu, Managing Partner of CPG, CINDIE Professional Group , , , ,

New York State (NYS) and New York City (NYC) have implemented optional Pass-Through Entity Taxes (PTET) to help S corporations and other pass-through entities mitigate the federal $10,000 cap on state and local tax (SALT) deductions. By electing to pay taxes at the entity level, these businesses can provide their owners with a federal deduction for state and local taxes that would otherwise be limited.

New York State PTET:

  • Eligibility: Available to partnerships and New York S corporations for tax years beginning on or after January 1, 2021.
  • Benefits: Electing entities pay income tax at the entity level, allowing individual partners or shareholders to claim a PTET credit on their NYS personal income tax returns. This structure effectively bypasses the federal SALT deduction cap, enabling full deduction of state taxes at the federal level.

New York City PTET:

  • Eligibility: Available to city partnerships and city resident New York S corporations for tax years beginning on or after January 1, 2022.
  • Benefits: Similar to the state-level PTET, the NYC PTET allows electing entities to pay city taxes at the entity level. Shareholders who are NYC residents can then claim a credit against their NYC personal income tax liability, reducing their taxable income federally and circumventing the SALT deduction cap.

Considerations:

  • Election Process: The PTET election must be made annually and is irrevocable for that tax year once made. tax.ny.gov
  • Nonresident Implications: Nonresident partners or shareholders do not benefit from the NYC PTET, as the credit applies only to NYC residents.
  • Federal Deduction: By paying taxes at the entity level, the business can deduct these taxes federally, effectively working around the $10,000 SALT cap imposed on individual taxpayers. nysscpa.org

Electing into the NYS and NYC PTET can provide significant tax benefits by allowing S corporations to fully deduct state and local taxes at the federal level, thereby reducing overall tax liability.

Election Timing Requirements:

As of February 2025, the deadline for electing into the New York State (NYS) Pass-Through Entity Tax (PTET) for the 2025 tax year is March 15, 2025. This election must be made annually through the entity’s Business Online Services account. tax.ny.gov

However, there is proposed legislation under consideration that aims to extend the PTET election deadline to September 15 of the tax year. If enacted, this change would provide entities with additional time to assess their financial positions before making the election. taxnews.ey.com

It’s important to note that, as of now, this extension has not been finalized. Therefore, entities should plan to make their PTET election by the current deadline of March 15, 2025.

For the New York City (NYC) PTET, the election process and deadlines align with those of the NYS PTET. Eligible entities must opt in by March 15, 2025, through their Business Online Services account. tax.ny.gov

Given the potential for legislative changes, it’s advisable to consult with a tax professional or regularly check the New York State Department of Taxation and Finance website for the most current information regarding PTET election deadlines.

Florida Tax and Asset Protection Benefits佛罗里达州税收和资产保护福利

Cindy Yu, Managing Partner of CPG, CINDIE Professional Group , , , ,

Cindy Yu, Florida CPA

Email: cpa@cindiellc.com  Phone: (732) 896-0272
Address:14767 Lattice Ct, Jacksonville FL3226

Florida Taxes and No Taxes 佛罗里达州有税和无税

Florida is known as one of the lowest-taxed states in the country in part because there is no state income tax. The state government largely funds its operations through fees, sales taxes and revenue from the federal government revenue from the federal government

While Florida does not tax personal income, it’s important to note that the state does place a levy on corporate profits. So if you own a company doing business in Florida, you may owe money to the state government.

Local governments in Florida also depend on property taxes for revenue. So even though there is no statewide property tax, you’ll want to consider these municipal costs when calculating the tax burden you’ll face in Florida.

佛罗里达州被称为全国税收最低的州之一，部分原因是没有州所得税。 州政府主要通过费用、销售税和来自联邦政府的收入为其运营提供资金

虽然佛罗里达州不对个人收入征税，但值得注意的是，该州确实对企业利润征税。 因此，如果您拥有一家在佛罗里达州开展业务的公司，您可能欠州政府钱。

佛罗里达州地方政府的收入也依赖财产税。 因此，即使没有全州范围的财产税，您在计算佛罗里达州将面临的税收负担时也需要考虑这些市政成本。

Florida Assets Protection Rules佛罗里达州资产保护规则

A Florida resident’s primary residence is protected from levy and execution by their judgment creditors by Article X Section 4 of the Florida Constitution. Florida also provides its residents with statutory creditor protection for life insurance proceeds and cash value, annuities, retirement accounts, and wages. This helps foster peace of mind that certain of your assets are not as easily reached by creditors. For married couples, Florida recognizes the Tenancy by the Entireties (TBE) form of joint survivorship ownership over real and personal property. TBE property may be protected from the creditors of one spouse if the other spouse is not also a party to the underlying claim.

根据佛罗里达州宪法第 X 条第 4 条，佛罗里达州居民的主要住所不受判定债权人的征税和执行。 佛罗里达州还为其居民提供人寿保险收益和现金价值、年金、退休账户和工资的法定债权人保护。 这有助于让您安心，因为债权人不会轻易获得您的某些资产。 对于已婚夫妇，佛罗里达州承认对不动产和动产的共同生存所有权的整体租赁 (TBE) 形式。 如果一方配偶不是相关索赔的一方，则 TBE 财产可能会受到一方配偶债权人的保护。

Obviously, if you spend more than half your time in Florida, you won’t reach the 183-day threshold in the state where you spend your summers. If you can’t spend that much time in Florida, then take a vacation, visit family or friends, or otherwise spend time in some other location — anything to avoid spending 183 days or more in your high-tax summer state.

显然，如果您有一半以上的时间在佛罗里达州度过，那么您在夏季所在的州将无法达到 183 天的门槛。 如果您不能在佛罗里达州度过那么多时间，那么可以去度假、拜访家人或朋友，或者以其他方式在其他地方度过一段时间 — 尽量避免在高税收夏季州度过 183 天或更长时间。