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Tag: Investor K-1
PTET Cash-Flow Hacks for AI Founders With Investor K-1s (2025)
Statutory Frame Law: Cal. Rev. & Tax. Code §§ 19900–19906 (AB 150, as amended by SB 113). Rate: Flat 9.3 % on each consenting owner’s California-source income. Election Window: Tax years 2021-2025; sunsets before 1-1-2026. Owner Limits: Credit flows only to individuals, trusts, estates, and SMLLCs owned by them. Funds taxed as partnerships cannot claim […]
Pass-Through Entity Elective Tax (PTET) 2025: 9.3 % or Nothing?
Statutory Snapshot Law: California Revenue & Taxation Code §§ 19900 – 19906 (originally AB 150; expanded by SB 113). Rate: Flat 9.3 % of each consenting owner’s California-source income in the entity. Years Available: Tax years 2021 → 2025 (sunsets before 1-1-2026 unless Congress lifts the federal $10 k SALT cap). Federal Context: Designed to […]