Level 15
12-04-2024
03:21 PM
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S-Corp is a pass through entity, so it pays no tax on income. You would allocate income from K1 to each state. Some states allow a SALT cap workaround may enable them to indirectly deduct state and local taxes they've paid beyond the $10,000 SALT cap. If you elect that option (if available in your states), then you have to allocate on the 1120S.