New York Pass-Through Entity Tax Planning
- Home
- NY PTET
NY PTET
The New York Pass-Through Entity Tax (PTET) can be an important tax-planning opportunity for eligible S corporations and partnerships. However, PTET planning should not be left until tax return season. Elections and payment deadlines are time-sensitive, so planning should take place during the tax year.
We help New York business owners evaluate PTET eligibility, elections, estimated payments, owner credits, and the interaction between New York State and New York City PTET.
New York State PTET
The New York State PTET is an optional tax imposed at the entity level on eligible partnerships and S corporations. In appropriate situations, the tax paid by the business can generate a corresponding credit for eligible owners on their New York State personal income tax returns.
We help businesses determine whether the election makes sense based on their ownership, income, residency, and overall tax situation.
Who May Elect PTET?
Eligible entities can include:
- New York S corporations
- Partnerships
- Certain LLCs taxed as partnerships
- Other eligible pass-through entities meeting New York requirements
Eligibility and election requirements should be reviewed carefully before making the election.
S Corporation PTET Planning
For S corporations, PTET planning requires consideration of shareholder ownership, income allocation, New York residency, estimated tax payments, and the resulting shareholder credit.
We help S corporation owners evaluate whether the PTET election fits their broader tax strategy.
Partnership PTET Planning
Partnerships and LLCs taxed as partnerships may also elect into New York PTET. We review partnership income, partner residency, ownership percentages, allocations, and projected tax liabilities when evaluating the election.
PTET Elections & Deadlines
The PTET election must be made within the applicable New York State election period, and the election is generally irrevocable for the tax year. Because election and payment requirements are deadline-driven, waiting until the end of the year or tax-filing season can limit planning opportunities. New York State PTET guidance
Estimated PTET Payments
Eligible entities may need to make estimated PTET payments during the year. We help project taxable income and potential PTET liability so your business can plan for payments and avoid unnecessary surprises at filing time.
Owner PTET Credits
One of the key benefits of PTET is the potential New York State PTET credit for eligible owners. We coordinate the entity-level tax calculation with the owner-level reporting so the applicable credit is properly reflected.
Resident & Nonresident Considerations
Owner residency can affect how PTET interacts with individual New York taxation. We consider New York resident and nonresident owners, New York-source income, ownership allocations, and applicable credits when evaluating PTET planning.
NYC PTET
Businesses operating in New York City may also need to consider the New York City Pass-Through Entity Tax (NYC PTET) separately from New York State PTET.
NYC PTET has its own eligibility requirements, election rules, payment requirements, and owner-level credit considerations. We evaluate NYS PTET and NYC PTET together when applicable rather than treating them as the same tax.
PTET Planning During the Tax Year
PTET is a planning issue—not simply a tax-return issue. Before making an election, we consider projected business income, owner residency, distributions, estimated payments, entity structure, and the potential owner-level tax benefit.
The earlier PTET is evaluated, the more opportunities you may have to plan around elections and estimated payments.
New York PTET Tax Planning
Our New York PTET planning services help partnerships and S corporations evaluate the potential benefits and requirements of New York State and NYC PTET. We help with eligibility, elections, estimated payments, owner credits, resident/nonresident considerations, deadlines, and year-end planning.