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Pass-through entity taxes present 5 main stumbling blocks

November 16, 2023 In The News 4 min read
Ron Cook Mike Merkel David Landwehr
Tax administrators and pass-through entity (PTE) owners should review these 5 key roadblocks when considering pass-through entity tax (PTET) elections. Our state and local tax professionals Ron Cook, Mike Merkel, and David Landwehr offer insight in Bloomberg Tax.
State and local tax professionals discuss challenges with pass-through entity (PTE) tax elections.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, SALT partner Mike Merkel, and SALT manager David Landwehr examine the most difficult challenges of pass-through entity tax elections, which are exacerbated by rule differences among states.

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