It is not too late for partnerships and S Corporations to elect the New York State (NYS) pass-through entity tax (PTET) for 2022. NYS has extended the deadline for eligible entities to take advantage of this workaround to the federal state and local tax (SALT) deduction limitation for the current tax year.
Originally due by March 15, 2022, the election can now be made by September 15, 2022. The timing of the election will determine how much estimated tax will be due upon election:
- For entities that make the election on or after March 15 and before June 15, 25% of the annual estimated PTET will be due to validate the election.
- For entities that make the election between June 15 and September 15, 50% of the annual estimated PTET will be due.