Pass-Through Entity - Elective Tax
By John Mlynczyk, Partner, and Terry Niegel, Partner
A recent Oregon law change provides a potential tax benefit to pass-through entity owners beginning January 1, 2022 (eligible entities include Partnerships, S-Corporations, and LLCs taxes as Partnerships or S-Corporations). This law change - Oregon SB 727 - was recently clarified with the first round of FAQs put out by Oregon.
Oregon SB 727 creates a work-around for the $10,000 State and Local Tax (SALT) cap for tax years beginning January 1, 2022 to January 1, 2024. This new law creates an alternative tax structure called the Pass-Though Entity - Elective Tax (PTE-E).
The PTE-E strategy allows for the business entity (S-Corp or Partnership) to “elect” to pay Oregon state income taxes at the entity level, on behalf of the individual owners.
This elected tax creates a business deduction at the entity level, and generally results in a personal tax credit to be claimed on your Oregon individual return. The business deduction will bypass the SALT Cap altogether, reducing the taxpayer’s distributive share of taxable income for the year.
However, there are traps for the unwary! Partners John Mlynczyk and Terry Niegel explain more in the new post on the KS Advisor Blog.
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Is your business looking for a new auditor?
Find out what four things Partner Pat Deming says you should look for when selecting an auditor in the KS Advisor Video Series. |
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Three Best Practices to Prevent Business Email Compromise
by Trever Campbell, Senior Manager
It is no longer a question of if your organization will experience some form of business email compromise (BEC), it is now only a question of how frequently it will occur and how prepared you are to handle it. There are many things you probably already have in place in some way including: qualified IT resources or staff, firewalls, and antivirus software, but there is lower hanging fruit than even those. Some of the best protection methods are also simple.
Trever Campbell shares three best practices to prevent compromised emails within your business in this post from the KS Advisor Blog.
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Our new KS Advisor program offers a variety of content for businesses, including industry specific and legislative updates, as well as for personal and family needs. Check out our resource center, including our blog, monthly Q&A events, new video series, and more! |
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1-Year Anniversary
Grand Opening Celebration
The grand opening celebration for our new Corvallis office was postponed last summer due to the pandemic, so we are going to have a 1-Year Anniversary Grand Opening instead. We hope you will join us on Thursday, June 9, more details coming soon.
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New Office Location
Coming Soon!
We are happy to announce that we will be relocating our Bend office to a new location in June. Stay tuned for more details!
Our Bend phone number and staff email addresses remain the same.
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Mark your calendars for Thursday, May 26, and our next KS Advisor Q&A event. More details coming soon!
If you would like to watch recordings of previous meetings, please click here. |
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Learn more about Kernutt Stokes, one of the 100 Best Companies to Work For in Oregon in 2021. Meet our people, experience our innovation, and discover the difference of working with Kernutt Stokes. |
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About Kernutt Stokes
Kernutt Stokes is a full-service accounting and business consulting firm established in 1945 with offices in Eugene, Bend, Corvallis, and Lake Oswego. Named one of the "100 Best Companies to Work For in Oregon," the firm specializes in privately-held and family-owned companies in construction, healthcare, manufacturing, transportation, and professional services. In addition to core accounting services, the firm provides accounting software consulting, 401(k) plan administration, business valuation, retirement planning, business consulting and other services.
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Bend | Corvallis | Eugene | Lake Oswego
541-687-1170
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