New York Tax and Finance Department Issues Information on Pass-Through Entity Tax Calculation, Credit

The New York Department of Taxation and Finance Aug. 17 issued information on calculating pass-through entity (PTE) taxable income, the pass-through entity tax (PTET) due, and the allowable PTET credit for partners, members, or shareholders, for individual income tax purposes. The PTET is imposed on the PTE taxable income of an electing entity. The PTE taxable income includes all income, gains, losses, or deductions of an electing entity that flow through to a direct partner, member, or shareholder for the state personal income tax. A federal Schedule K-1 issued to a disregarded entity for tax purposes, like a single-member limited ...