Angela Acosta of BDO has published an article, “South Carolina Enacts PTE Tax Election As Workaround To $10K Salt Cap,” which discusses the logistics of South Carolina following in the footsteps of other states and implementing PTE taxation options. The article begins as follows:
South Carolina enacted S.B. 627 on May 17, 2021, joining 11 other states that have granted pass-through entities (PTEs) the option to be taxed at the entity level on active trade or business income in an effort to help individual residents workaround the $10,000 federal cap on SALT deductions that was included in the 2017 Tax Cuts and Jobs Act. South Carolina’s new PTE election is effective for tax years beginning after 2020.
To view the full article, click here: “South Carolina Enacts PTE Tax Election As Workaround To $10K Salt Cap”
Posted by Anthony Tran, Associate Editor, Wealth Strategies Journal