Colorado pass-through entity tax updates: What you need to know
Dec 21, 2022 · On May 16, 2022, Governor Jared Polis signed SB 22-124 (the SALT Parity Act) into law, making changes to Colorado's pass-through entity (PTE) tax. Our Colorado state tax experts summarize the changes and discuss the unique …
Instructions. Taxpayers are required to make estimated payments during the tax year if their Colorado income tax due will exceed certain thresholds. This form is used for partnerships and S corporations to make estimated payments.
Overview. On June 23, 2021, Colorado Governor Jared Polis signed into law House Bill 21-1327 (HB 1327), which is entitled the “SALT Parity Act” and provides for an election to impose income tax on S corporations and partnerships (pass-through entities or PTEs). This Tax Alert summarizes some of the more significant provisions of HB 1327.
Questions to consider before electing into a PTE tax
Sep 1, 2022 · Can resident and nonresident owners make an election or consent to participate (if that is part of the state's PTE tax regime)? What forms need to be filed? What is the entity withholding tax rate?
States’ PTE Tax Elections: Status and Issues to Consider - BDO USA
Mar 22, 2022 · The sections below list some of the most important issues to consider from a holistic perspective with examples of the kinds of approaches individual states take to address them, and provide a map of the PTE tax regime status across the U.S.
How Does a Pass-Through Entity Make the Election? For tax years beginning on or after January 1, 2022, a Colorado pass-through entity may make the SALT Election by making an annual check-the-box election on the entity’s applicable Colorado state income tax return. The election must be made annually and it is binding on all of the pass-
Colorado Tax Year 2022 Pass-Through Entity Tax Election Form
Nov 9, 2022 · Like many states, Colorado enacted an elective pass-through entity (PTE) tax regime, effective for tax years beginning January 1, 2022. On October 21, 2022, the Colorado Department of Revenue (DOR) released form DR 1705 for making a Colorado PTE tax election prior to the end of the 2022 tax year.
Colorado Significantly Modifies PTE Tax Election Regime ... - BDO …
On May 16, 2022, Colorado enacted S.B. 22-124 to significantly modify its pass-through entity (PTE) elective tax regime (referred to as the “SALT Parity Act”). The legislation makes Colorado’s PTE tax election available retroactively to 2018.
How to enter Colorado PTE in ProSeries - Intuit Accountants
Jan 29, 2024 · To generate PTE for an S corporation: Open the Colorado S Corporation Information Worksheet. Scroll down to Part II - Tax Year and Filing Information. Check the PTE is making the annual voluntary election under the SALT Parity ACT for tax year 2022 checkbox.
Pass-through entity tax election. S.B. 124 amends the pass-through entity tax election to be effective for tax years beginning on or after January 1, 2018 in which there is a limitation on individual income tax deductions under Internal Revenue Code section 164.