NASSAUSUFFOLK

The screen for electing the city PTE, says the following:

An authorized person may make this election on behalf of an eligible entity if the entity is opting in to the New York State PTET and:

• if the entity is a partnership, it has at least one partner or member that is a city resident individual; or

if the entity is an S corporation, it is choosing to be taxed as a resident S corporation for PTET purposes, and all its shareholders are city resident individuals

So it seems that a NYS S corporation cannot make an election for NYC PTET if even one shareholder is a non- resident. What if all the shareholders are residents and one of the shareholders is a trust. The beneficiary of the Sub-Chapter S trust is not a NYC resident but the trustee of the trust is.

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Gabriel Bentovim
HOFFMAN & BENTOVIM, CPAs PC
Commack NY
631-499-1500
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