Understanding the NY PTET:

A Tax-Saving Opportunity for the Start of the Year

1. What Is the NY PTET?

• NY PTET (Pass-Through Entity Tax) is a state tax designed to help business owners work around the $10,000 SALT deduction cap.

• It allows owners of S corps and partnerships to deduct their personal NY State income tax.

2. Why January Is Crucial

• The annual PTET election must be made by March 15 (for most taxpayers).

• Now is the time to assess whether opting in benefits their business.

3. Who Should Elect the PTET?

• S Corps most commonly benefit from the election.

• A business with $100k in profit can save up to $3,500 in federal taxes.

4. What Are the Steps to Elect the PTET?

• Log In to Your NYS Business Online Services Account

• Make the Election

• Make Estimated Payments

5. How NotchBooks Can Help

• Contact us to determine if electing and paying PTET will benefit you.