- ShindelRock - https://www.shindelrock.com -

Last minute rule changes could affect tax payments made by partnerships and S-Corps

[1]Michigan Governor Gretchen Whitmer recently signed into law the ability for pass-through entities (partnerships and S-Corps) to elect and pay an entity-level tax.  This would allow for the pass through business owners to take a state income tax deduction at the federal level, and thus by-pass the limitation on Schedule A.  The pass-through owners would then get a refundable credit on their MI-1040 to offset against their MI taxes.

A few things to note about the change:

Guidance is expected in January 2022.  For now, speak to your ShindelRock tax professional [2] to evaluate if this new payment option is right for your business.