![]() ![]() The Act has added an additional subsection, Section 612(b)(3)(C), which provides that “income taxes” do not include the NYS PTET, or any other substantially similar pass-through entity tax of another state, to the extent these taxes are added back under the Section 612(b)(43) PTET deduction addback.The Act makes amendments to Section 612(b)(3), requiring an addback of income taxes, to the extent that such taxes are deductible for federal AGI purposes and not credited against federal income tax.New York State and New York City PTET Add Back The NYC PTET does not replace the NYC Unincorporated Business Tax, or the NYC General Corporation Tax, but is an optional additional tax.The NYC PTET will have a flat rate of 3.876%, and a credit will be available to resident partners, members, and shareholders against their personal income tax in an amount equal to their share of the NYC PTET paid on their behalf.The City PTET closely mirrors the State PTET, permitting eligible “city partnerships” and eligible “city resident S Corporations” to make an irrevocable election to pay tax at the entity level in a similar method as the NYS PTET election.The Act creates the City of New York PTET, effective for tax years beginning on or after Jan.Electing standard S Corporations include such items in their taxable income only to the extent that these items are derived from or connected with New York sources.When an entity qualifies as an electing resident S Corporation, their taxable income will include all items of income, gain, loss, or deduction to the extent these items are also included in the taxable income of their resident members.An “electing resident S Corporation” will possess all resident members at the time the election is made, and an “electing standard S Corporation” will remain the default classification should the entity not meet the standard of an “electing resident S Corporation” during the year in question.1, 2022, there is a revised definition of who qualifies as an “electing S Corporation.” The definition now has two components, the first for an “electing resident S Corporation” and the second for an “electing standard S Corporation.” Effective for tax years beginning on or after Jan.Updates to New York PTET For S Corporations Prepare for the Future of Your Business.Mitigate Enterprise Risk & Achieve Compliance.Managed and Outsourced Services to Administer and Safeguard Public Funds’.Managed Services and Outsourced Accounting. ![]() Paycheck Protection Program (PPP) Loan Forgiveness Assistance.Cybersecurity, Technology Risk, Privacy.Financial Modeling and Decision Analytics.New SEC cybersecurity guidelines: Next steps for public companies ![]()
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