Don't Miss Out on This Major Tax Deduction Here's How to Save Big This Year

Did you know that you might be missing out on a significant tax deduction?

Many business owners don’t even realize they’re leaving money on the table with the new pass-through entity tax (PTE) election.

Let’s break it down and see how you can take action right now to keep more of your hard-earned money!

What is the Pass-Through Entity Tax (PTE) Election?

The PTE election is a recent change in state tax law designed to help business owners save on their state and local taxes. It allows certain businesses to pay state taxes at the entity level—unlocking a valuable deduction that was lost in the 2017 tax overhaul.

But here's the catch: not everyone qualifies, and the rules vary by state. So, how do you know if you're eligible? Let's go step-by-step.

Step 1: Check If Your Business Qualifies

First things first, your business needs to be a pass-through entity.

This means:
• Yes: S-Corps, Partnerships, Multi-member LLCs.
• No: Single-member LLCs, C-Corps, Sole Proprietorships.

If you're unsure which category your business falls into, it’s worth confirming with your CPA or tax advisor.

Step 2: Find Out If Your State Offers This Deduction

Currently, around 30 states have enacted some form of the pass-through entity tax. You’ll need to confirm whether your state is on the list.

Click this link to see if your state is on the list.

If your state is participating, you’re one step closer!

Step 3: Understand the Deadlines and Requirements

Every state has its own rules, deadlines, and procedures for making the PTE election. For example:
• California: Requires the first payment by June 15th of the prior year.
• New York: You must make the election by March 15th of the current year.

Make sure you understand the specifics for your state. This can be tricky, so it might be time to have a chat with your CPA.

Step 4: Ask Your CPA These Crucial Questions

Here are some questions to bring to your CPA to ensure you’re not missing out:
• “Is my business eligible for the PTE election in my state?”
• “What deadlines do I need to meet to qualify for the deduction?”
• “How much could I potentially save by making this election?”
• “Has my state set any specific conditions or requirements I should be aware of?”

Don’t assume your CPA is already on top of this—many are still catching up on these new changes.

Step 5: Get a Second Opinion if You Have Doubts

If you're unsure about your current tax situation or feel like you’re not getting the full picture, it might be time for a second opinion. You don’t want to leave thousands of dollars on the table just because your CPA is out of the loop.

We're here to help! Schedule a free consultation to see if you're missing out on this valuable deduction. We’ll walk you through your options and help you make an informed decision.

Step 6: Join Our Free Community + Ask The CPA Live!

We’ve just launched the Flywheel community where you can ask questions and get answers from me and my partner Mitch Wilder to help you grow your business. Each month we do a live “Ask The CPA” session where you can join us on Zoom and get your questions answered live.

Join for Free Here

Take Action Now—Don’t Leave Money on the Table!

The tax savings on this can be substantial, and it’s too big to ignore. Don’t wait until next year to find out you missed a golden opportunity.

If you want to know more about how this works and whether it’s right for you, let’s chat. Book a time on our calendar and let’s see how much you could be saving.