Navigating PTET, NIIT & SECA for Pass-Through Entities

Overview

Understanding Pass-Through Entity Tax (PTET), Net Investment Income Tax (NIIT) and Self-Employment Contributions Act (SECA) tax is important for identifying strategies to minimize tax liabilities for owners and partners of pass-through entities. David Kirk, Tax Partner and leader of the Private Tax Group of Ernst & Young LLP's National Tax Department, joins this segment to discuss key tax issues for PTEs and explains the differences between credit and corporate taxation models for PTET, state-specific rules and the impact of default elections. This includes discussion of how pro rata allocation affects deductions and credits, potential S Corporation status issues and the role of grantor trusts.