Can my S Corporation pay my Real Estate Taxes? If it can pay my personal withholding tax (PTE), why not?

Forum|Forum|4 years ago
January 17, 2022
3 replies
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Can my S Corporation pay my property taxes so that it can in turn deduct them on the Federal S Corp return? Would that allow me to deduct real estate taxes that might not otherwise be deducted because of the $10,000 SALT limitation?

I think the answer is NO because the corporation doesn't have an obligation in the first place to pay my property taxes. Other thoughts?

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Best answer by sjrcpa

Many other states have a PTE tax, too. But you still can't have the S Corp deduct the shareholder's personal real estate tax.

sjrcpa

Level 15

No is the correct answer.

You join the millions of other taxpayers that are subject the the $10K SALT limit.

The more I know the more I don’t know.

ljr

Level 9

if you are in NY look at PTET (pass through entity tax) - optional - have to opt in each year. Might be more work than it is worth. www.tax.ny.gov/bus/ptet