Don’t Miss This Valuable California Business Tax Strategy Deadline In 2023

You may think it’s crazy that I’m suggesting you pay an optional tax, but once you understand the tax benefits, you won’t think this is a dumb idea. The pass-through entity tax (PTET) is a valuable tax credit many high-income California business owners need to get. It helps turn non-deductible state taxes you must pay each year into valuable tax savings.

If you only speak to your tax person once a year when filing your taxes, you will likely miss out on substantial tax savings. The more you make, the larger the value of the tax savings could be. The deadline to elect to take the PTET tax deduction in California for 2023 is June 15, 2022. This is why it’s important to have a proactive and tax-planning-focused financial planner in your corner, helping you make smarter financial moves throughout the year.