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Tag: Pass-Through Entity
Paying the CA PTET Voucher: Exact Form 3893 Walk-Through for 2025
Legal & Technical Authority State Law: California Revenue & Taxation Code §§ 19900-19906 (AB 150, SB 113) require two pass-through entity elective tax (PTET) payments—one during the tax year and one with the return. Federal Context: PTET shifts the state tax to entity level, making it deductible under IRC § 162 and sidestepping the SALT […]
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 […]