California FTB Issues Information on Pass-Through Entity Elective Tax

The California Franchise Tax Board Sept. 8 issued information on the pass-through entity (PTE) elective tax. The information includes: 1) qualifying PTEs may annually elect to pay an entity-level tax on income for taxable years beginning on or after Jan. 1 and before Jan. 1, 2026; 2) qualified taxpayers will receive credit for their share of the entity-level tax, reducing their California individual income tax; 3) qualifying PTEs are entities taxed as partnerships or S corporations and don’t include publicly traded partnerships, entities permitted or required to be in a combined reporting group, and entities having a partnership as a ...