X_Test_Enacted


X_Test_Enacted
0
Entities subject to tax
Mandatory or elective
Effective date
Tax base
Tax rates
Credits
1
Entities treated as partnerships for federal income tax purposes
S corporations
Mandatory
Tax years beginning on or after Jan. 1, 2018
Applies in addition to business entity tax
Standard base (default): All of the Connecticut source income less any source income from subsidiaries
Alternative base (election): Standard base (see above) multiplied by the percentage of distributive shares of owners subject to Connecticut's individual income tax, plus resident portion of unsourced income
PTE: 6.99% Top individual income: 6.99% > $500,000
Partners are entitled to a credit of 93.01% of their share of PTE's tax liability
Applies against corporation business tax or individual income tax
2
Connecticut SB 11
3
Entities treated as partnerships for federal income tax purposes
LLCs
S corporations
Annual election
S corporations: tax years beginning on or after Jan. 1, 2018
All other entities subject to tax: tax years beginning on or after Jan. 1, 2019
The character of K-1 income, loss and other items remains the same as if the pass-through entity tax election is not made
The apportionment and allocation rules for pass-through entities apply as if the election has not been made:
Resident: 100% allocated to Wisconsin;
Nonresident: subject to normal apportionment/allocation rules based on situs
PTE: 7.9% Top individual income: 7.65% > $247k
Income taxed at the PTE level is not taxed again at the individual level
Individual owners/partners of PTE subtract from their Wisconsin adjusted gross income owner’s share of income reported at the PTE level.
There are no rows in this table
Want to print your doc?
This is not the way.
Try clicking the ⋯ next to your doc name or using a keyboard shortcut (
CtrlP
) instead.