December 19, 2022
Small business owners, do you know about the new SALT deduction?
New for 2022, many States including GA allow owners of pass through entities like LLCs and Sub S corps to pay personal State And Local Taxes through their entity which reduces the taxable income passed through via their K1s.
This can have an economic benefit equal to your margin tax rate, however, by making the election, individual owners may also limit their ability to use credits or losses on their Georgia individual income tax. If you don’t do it for 2022, then you might want to consider planning ahead for 2023 to take advantage of this option.