Dear client,

In case you missed it, Nebraska’s Legislative Bill 754 had large Pass-Through-Entity Tax law updates.

What is PTET?
PTET laws allow these entities to elect to pay tax at the entity level, shifting the tax liability from individual owners to the entity itself. Thereby allowing individual owners to avoid the federal $10,000 state and local tax itemized deduction limitation that would apply if they paid tax individually.

Nebraska’s Update

• Retroactive to tax year 2018.
• The PTE tax will be calculated on apportioned income.
• The PTE tax rate is 6.84% for 2018-2022 and 6.64% for 2023, aligning with the top individual tax rate.
• Owners receive a refundable credit equal to 100% of their share of PTET paid by the entity.
• PTET estimated payments required for tax years beginning 1 /1 /24 or later.

Give us a call at (402) 932-8815 to set up a tax planning appointment and ensure the largest legal tax deductions possible!

Sincerely,

W. E. Stevens, PC

Serving our clients with focused intentionality, professionalism, and timeliness