Organize entity, owner, state, election, payment, credit, and cash-flow facts before deciding whether a PTET election may be useful and available.
Answer a few quick questions below. It is private - nothing is submitted or stored - and takes about a minute.
Informational multistate tax screening only; state and local rules vary and must be verified for the applicable year and jurisdiction.
Here is what the checker asks and why each step matters. Prefer to talk it through? Contact us and we will help directly.
The PTET workaround only exists for pass-throughs; a sole proprietorship, single-member LLC, or C corporation cannot make the election.
The elective PTET blessed by IRS Notice 2020-75 is available only to partnerships and S corporations; this entity cannot make it, so consider other planning for the IRC Sec. 164(b)(6) SALT cap.
Official guidance: Official state tax agency directory
Roughly three dozen states offer a PTET; states with no income tax, and a few that never enacted one, give owners nothing to elect - a CPA would confirm each state's current status.
No state where you file has enacted an elective PTET, so there is nothing to elect under IRS Notice 2020-75 until a state acts or your footprint changes.
Official guidance: Official state tax agency directory
The PTET only helps owners whose SALT deduction is being capped; commonly this means owners in high-tax states or with large property-tax and other state-tax bills - a CPA would confirm each owner's cap position.
With owners at or below the IRC Sec. 164(b)(6) $10,000 cap, model the benefit first - it may be small because the SALT deduction is not being lost.
Official guidance: Official state tax agency directory
Multistate elections raise resident-credit, sourcing, and other-state-credit questions; the benefit in one state can be clawed back by how a second state treats the tax - confirm each state's current rules.
Coordinate a multistate PTET election so a deduction earned under IRS Notice 2020-75 in one state is not clawed back by another state's resident-credit rules.
Official guidance: Official state tax agency directory
A clean, single-state, all-resident owner group is where the PTET benefit is most predictable; corporate owners, tiered partnerships, or dissenting owners complicate the math - a CPA would confirm owner eligibility.
On these facts the election commonly delivers a real federal deduction under IRS Notice 2020-75; confirm the state deadline and any required estimated payment before filing. The mixed owner group changes the owner-level credit, so model the benefit owner by owner before electing under IRS Notice 2020-75.
Official guidance: Official state tax agency directory
Send us your situation and one of our senior CPAs will review it with you - fixed fee, no surprises.
Contact Us