Daniel HonanFounder, Profitable Painter CPA PLLC · I help painting contractors increase profits & cash flow while reducing taxes♦ Bookkeeping ♦ Tax

Painting Business Owners: Get with a Tax Pro before your state's #PassThroughEntityTax deadline.

Name: Painting Business Owners: Get with a Tax Pro before your state's #PassThroughEntityTax deadline.
Uploaded: 2023-10-18T14:16:16+00:00
Duration: 41 s
Channel: Daniel Honan
Description: In this brief dialogue, the speakers explain that for pass‑through entity (PTE) taxes, the tax liability is unavoidable—business owners will have to pay…

18 Oct 2023 · 1 min

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In this brief dialogue, the speakers explain that for pass‑through entity (PTE) taxes, the tax liability is unavoidable—business owners will have to pay the tax regardless of timing. The key strategic consideration is when the tax is paid and to whom, which can affect cash flow and compliance. They stress that there are few, if any, additional tax‑saving maneuvers beyond proper timing and implementation. Because each state has its own PTE regulations and opt‑in procedures, the speakers advise owners to consult a tax professional familiar with their specific state rules to ensure correct filing and to avoid missing any benefits.

Chapters

That's huge. The additional amount of time to do this would pretty much be a wash because you're going to have to pay your taxes anyways. It's just when you pay them and to who you're paying them. There's very rarely a strategy where it's really just, there's no extra things you really need to do or time you need to spend. It's really just knowing a certain thing and implementing it. So this is really awesome.
I agree. Most tax saving strategies require you to buy something to write them off, kind of benefit to get a tax break. In this situation, you're going to be paying the taxes no matter what. So this is just doing it in a way that is most advantageous to you. Now, that being said, there's— there are some caveats here. Every state is different. Important thing is figuring out what your state's regulations are and how you have to opt in. Talk to your tax professional who is familiar with the rules in your state. Have them help you make sure that you are getting in under the regulations so that you don't miss out.