LumiQ Podcast: Pass-Through Entity (PTE) Tax Election

LumiQ Podcast: Pass-Through Entity (PTE) Tax Election

Many U.S. taxpayers in high-tax states have been adversely affected by the state and local tax (SALT) federal deduction limitation introduced by the Tax Cuts and Jobs Act (TCJA). Our tax shareholder, Keith Glen, explains on the LumiQ podcast pass-through entity (PTE) tax election, a workaround legislated by the majority of states that circumvents this federal deduction limitation.

In this episode, they cover:

  • The history of this election, its purpose, and eligibility requirements
  • The mechanics of the PTE tax deduction, including the credit method and income reduced method
  • Specific rules for the PTE tax election in California including eligibility requirements, annual filings, the PTE tax calculation, and payment requirements
  • Other considerations when determining if this election make sense for your situation

This episode was hosted and produced by Magda Kuratczyk. Audio engineering by Matt Ravdas and Omer Gurbuz.

Click the preview audio clip below to listen and if you would like to listen to the full LumiQ podcast, click here!


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