The 2024 Election’s Potential Impact on Tax Policy
U.S. election results (and their impacts on tax policy) are always important for business owners and the broader population. However, the 2024...
September 21, 2021 - Pass-through entity tax allows an entity to pay taxes directly at the entity level on behalf of members, partners, and shareholders. Enacted in July of this year, it helps to circumvent the $10,000 Federal cap on state and local tax deductions phased in during tax reform. Here is a list of common questions around the election.
Owners representing more than 50% control of a partnership, LLC, or an S corporation need to support opting in—and once applied, it will apply to all owners. None of the members, partners, or shareholders can be a partnership, LLC (other than a single-member LLC), or corporation.
The entity's Minnesota source income is multiplied by 9.85%, the highest individual income tax rate. The tax is paid by filing Schedule PTE by the due date or extended due date of the entity's tax return.
If you would like to see all of the details of this update, you can click here to visit the Minnesota Department of Revenue website.
For questions regarding electing the pass-through entity tax, you should reach out to your trusted tax planning advisor.
U.S. election results (and their impacts on tax policy) are always important for business owners and the broader population. However, the 2024...
St. Paul, Minnesota (October 1, 2024) – Certified public accounting firm Redpath and Company (Redpath) has promoted Sarah Gengenbach to partner and...
Editor's note: This piece was originally published in 2023 and has been updated to include additional resources.