NASSAUSUFFOLK

 View Only

  • 1.  NYC PTET

    Silver Most Valuable Member
    Posted 01-21-2025 12:03 PM

    Looking to see if we have any PTET experts out there. I have a NYS and NYC S corporation that has a trust as one of its beneficiaries. Is there any reason that they cannot make a NYC PTET election. 

    The trust is established in NYS , the trustee is a NYC resident, the beneficiary of the trust is Colorado resident but the income is NYC source income from real estate rental



    ------------------------------
    Gabriel Bentovim
    CPA
    HOFFMAN & BENTOVIM, CPAs PC
    Commack NY
    631-499-1500631-499-1500
    631-499-1500
    ------------------------------


  • 2.  RE: NYC PTET

    Posted 01-22-2025 07:24 AM

    No reason at all.  Just make sure that when you file the PTET return, you use the SSN of the ultimate individual that will claim the PTET credit and not the ID# of the trust.



    ------------------------------
    Glen Ross
    CPA
    Ross Company CPA PLLC
    MT PLEASANT SC
    631-979-3141
    glen@rosscompanycpa.com
    ------------------------------

    Original Message


  • 3.  RE: NYC PTET

    Posted 01-22-2025 09:12 AM

    For an S-corporation to make the NYC election, all shareholders must be NYC residents. If that's the case, you can make the election and the credit will pass to the trust. But note that the trust cannot pass the credit to its beneficiary. It can only be used at the trust level. 



    ------------------------------
    Richard Feldman
    Feldman
    Armanino
    Garden City NY
    516-542-6300
    ------------------------------

    Original Message


  • 4.  RE: NYC PTET

    Posted 01-22-2025 09:56 AM

    Correct on the NYC residency but I don't believe you're correct in passing the credit to the trust.  We recently went through this exact issue with NY, because we passed the credit to the trust.  We were advised by the state that the credit should pass to the ultimately beneficiary that claims the credit on either their NY resident or non-resident tax return. 



    ------------------------------
    Glen Ross
    CPA
    Ross Company CPA PLLC
    MT PLEASANT SC
    631-979-3141
    glen@rosscompanycpa.com
    ------------------------------

    Original Message


  • 5.  RE: NYC PTET

    Posted 01-22-2025 10:02 AM

    Its going to depend on the type of trust. You are correct if it's a grantor trust. But not for other types of trusts. See below:

     

    Who can claim the NYC PTET credit

    Eligible credit claimants that receive a NYC PTET credit from an electing entity may claim the credit on their personal income tax returns. Only direct partners of an electing entity are eligible to claim the NYC PTET credit. If the eligible credit claimant is a trust, other than a trust that is disregarded for tax purposes, it is allowed a NYC PTET credit on the trust's fiduciary income tax return, but it is not permitted to distribute any NYC PTET credit it receives to its beneficiaries.

     

     

    Richard L. Feldman           
    Director

    Rich.Feldman@armanino.com

     

    Armanino Advisory LLC

    100 Quentin Roosevelt Blvd, Suite 516| Garden City | NY 11530

    516 542 6300 Main |  516 393-5637 Direct | 516-203-7687 Fax

    LinkedIn | armanino.com

     Click here to securely send me files

     

     

    Delivering impactful, bold solutions that increase clarity

    and spark success for today and tomorrow.

     

     

     

    CONFIDENTIALITY AND PRIVACY NOTICE:
    This communication, including attachments, is for the exclusive use of the person or entity to which it is addressed and may contain confidential, proprietary and/or privileged information. Any review, retransmission, dissemination or other use of, or taking of any action in reliance upon, this information by persons or entities other than the intended recipient is prohibited. If you received this by mistake, please contact the sender immediately. Check here for information about Armanino's use of certain personal information.

    "Armanino" is the brand name under which Armanino LLP and Armanino Advisory LLC, independently owned entities, provide professional services in an alternative practice structure in accordance with law, regulations, and professional standards. Armanino LLP is a licensed independent CPA firm that provides attest services, and Armanino Advisory LLC and its subsidiary entities provide tax, advisory, and business consulting services. Armanino Advisory LLC and its subsidiary entities are not licensed CPA firms.



    Original Message


Discussion Disclaimer

The opinions expressed are the views of the author alone and should not be attributed to any other individual or entity and shall not constitute an accounting opinion.