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It 2663 and it 2664 Forms

It 2663 and it 2664 Forms

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[Music] hey there I'm Amy northard the accountant for creatives and today we've got some important tax information to discuss specifically about a concept known as pass through entity tax or pet it's a topic that's been generating quite a buzz lately so if you're a business owner or entrepreneur you'll want to pay close attention so first things first what exactly is past through entity tax or Pet Well Pet is a state tax designed to benefit pass through businesses like s corporations and Partnerships now I know it might sound a bit counterintuitive a tax that helps you save money stick with me and I'll explain the Story begins back in 2017 when the tax cuts and job Act was passed which put a $10,000 cap on the yearly state and local tax deductions that individuals can claim on their federal tax return until 2025 this cap is known as the salt cap now to bypass this limitation some states have introduced a new tax with IRS approval

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