Navigating PTET, NIIT, and SECA for Pass-Through Entities ON DEMAND

Overview

Understanding Pass-Through Entity Tax (PTET), Net Investment Income Tax (NIIT), and Self-Employment Contributions Act (SECA) tax is important for identifying strategies to minimize tax liabilities for owners and partners of pass-through entities. David Kirk, Tax Partner and leader of the Private Tax Group of Ernst and Young LLP’s National Tax Department, joins this segment to discuss key tax issues for PTEs and explains the differences between credit and corporate taxation models for PTET, state-specific rules, and the impact of default elections. This includes discussion of how pro rata allocation affects deductions and credits, potential S Corporation status issues, and the role of grantor trusts.

Highlights

Minimizing tax liabilities for owners and partners of pass-through entities.

Prerequisites

None.

Designed For

CPAs and tax professionals.

Objectives

Identify the differences between credit and corporate taxation models for PTET. Determine how pro rata allocation impacts deductions and credits for PTEs. Distinguish the self-employment tax treatment for general and limited partners. Identify strategies to minimize tax liabilities related to NIIT and business-related investment income.

Preparation

None.

Notice

None.