๐๐€๐‘๐“๐๐„๐‘๐’๐‡๐ˆ๐๐’ & ๐’ ๐‚๐Ž๐‘๐๐’ ๐ƒ๐„๐ƒ๐”๐‚๐“๐ˆ๐Ž๐ ๐จ๐Ÿ ๐’๐“๐€๐“๐„ & ๐‹๐Ž๐‚๐€๐‹ ๐“๐€๐—๐„๐’ (๐Ÿ๐Ÿ/๐Ÿ๐Ÿ/๐Ÿ๐ŸŽ๐Ÿ๐ŸŽ)

The IRS has clarified the treatment of State and local income taxes imposed on a partnership or an S corporation.

Such taxes will be deductible for those entities in computing their non-separately stated taxable income or loss for the taxable year of payment.

Therefore, these taxes wonโ€™t be subject to the State and local tax deduction limitation for partners and shareholders who itemize deductions.

The above applies from November 11, 2020 forward. And taxpayers can apply these rules to specified income tax payments made in a taxable year of a partnership or an S corporation ending after Dec. 31, 2017 and before the date the forthcoming proposed regulations are published in the Federal Register.

For more information, see https://www.irs.gov/newsroom/irs-provides-certainty-regarding-the-deductibility-of-payments-by-partnerships-and-s-corporations-for-state-and-local-income-taxes

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๐“๐ก๐จ๐ฆ๐š๐ฌ ๐‰๐š๐ฆ๐ž๐ฌ ๐‚๐š๐ซ๐ซ๐จ๐ฅ๐ฅ, ๐.๐‚. ๐ข๐ฌ ๐š ๐ฅ๐š๐ฐ ๐Ÿ๐ข๐ซ๐ฆ ๐Ÿ๐จ๐œ๐ฎ๐ฌ๐ข๐ง๐  ๐จ๐ง ๐Ÿ๐ž๐๐ž๐ซ๐š๐ฅ ๐š๐ง๐ ๐ฌ๐ญ๐š๐ญ๐ž ๐ญ๐š๐ฑ๐ž๐ฌ ๐ญ๐ก๐š๐ญ ๐ฉ๐ซ๐จ๐ฏ๐ข๐๐ž๐ฌ ๐ข๐ง๐๐ข๐ฏ๐ข๐๐ฎ๐š๐ฅ๐ฌ ๐š๐ง๐ ๐›๐ฎ๐ฌ๐ข๐ง๐ž๐ฌ๐ฌ๐ž๐ฌ ๐ฐ๐ข๐ญ๐ก ๐ญ๐š๐ฑ ๐ก๐ž๐ฅ๐ฉ ๐š๐ง๐ ๐ฌ๐จ๐ฅ๐ฎ๐ญ๐ข๐จ๐ง๐ฌ ๐Ÿ๐จ๐ซ ๐ญ๐จ๐๐š๐ฒ ๐š๐ง๐ ๐ญ๐จ๐ฆ๐จ๐ซ๐ซ๐จ๐ฐ.

๐Ž๐ฏ๐ž๐ซ ๐Ÿ‘๐Ÿ“ ๐˜๐ž๐š๐ซ๐ฌ ๐จ๐Ÿ ๐„๐ฑ๐ฉ๐ž๐ซ๐ข๐ž๐ง๐œ๐ž ๐ข๐ง ๐ˆ๐‘๐’, ๐๐˜ & ๐๐‰ ๐“๐š๐ฑ ๐€๐ฎ๐๐ข๐ญ๐ฌ, ๐€๐ฉ๐ฉ๐ž๐š๐ฅ๐ฌ & ๐“๐š๐ฑ ๐๐ฅ๐š๐ง๐ง๐ข๐ง๐ .

๐–๐–๐–.๐“๐‰๐‚๐€๐‘๐‘๐Ž๐‹๐‹-๐‹๐€๐–.๐‚๐Ž๐Œ