Pass-through entity tax rules continue to cause headaches. Nearly all states with an individual income tax have passed different PTET provisions, creating challenges for tax administrators and entity owners considering PTET elections. Five quirks have proven to be some of the most difficult areas to navigate.
In Bloomberg Tax, state and local tax (SALT) partner Ron Cook, and SALT partner Mike Merkel examine the most difficult challenges of pass-through entity tax elections, which are exacerbated by rule differences among states.
