⚠️ OBBBA Changed the PTET Calculus: The SALT cap increased from $10,000 to $40,000 for 2025-2029 (phases out $500K-$600K MAGI). Many clients who benefited from PTET before may now be worse off electing due to lost QBI deduction.
Client Information
📋 Basic Information
💰 Income & Tax Information
S-Corp or Partnership net income allocated to owner
🏠 SALT Components
Vehicle registration, other deductible state taxes
For W-2 wage limitation calculation (above threshold)
2.5% of unadjusted basis of depreciable property
📊 PTET Decision Analysis
Recommendation Loading...
$0
Calculating...
Total SALT
$0
SALT Cap
$40,000
Over/(Under) Cap
$0
QBI Impact
$0
Side-by-Side Comparison
❌ WITHOUT PTET
State Tax (Personal)$0
SALT Deduction (Sch A)$0
Federal Tax Savings$0
QBI Base$0
QBI Deduction (20%)$0
QBI Tax Benefit$0
Net Tax Position$0
✅ WITH PTET
PTET Paid (Entity)$0
SALT Deduction (Sch A)$0
Federal PTET Deduction$0
Federal Tax Savings$0
QBI Base (Reduced)$0
QBI Deduction (20%)$0
QBI Tax Benefit$0
Net Tax Position$0
Detailed Calculation
Component
Without PTET
With PTET
Difference
State Income Tax
$0
$0 (via entity)
$0
SALT Deduction Available
$0
$0
$0
Federal Deduction for State Tax
$0
$0
$0
QBI Base (§199A)
$0
$0
$0
QBI Deduction
$0
$0
$0
Federal Tax on SALT Savings
$0
$0
$0
Federal Tax on QBI Savings
$0
$0
$0
Total Federal Tax Benefit
$0
$0
$0
Key Decision Factors
Reference: QBI Phase-Out Thresholds (2025)
Filing Status
Full QBI Below
Phase-Out Range
No QBI Above
Married Filing Jointly
$394,600
$394,600 - $494,600
$494,600 (SSTB only)
Single / HoH
$197,300
$197,300 - $247,300
$247,300 (SSTB only)
Key Insight: If your client is an SSTB above the phase-out threshold, QBI = $0 anyway, so PTET has no QBI cost. In these cases, PTET is beneficial as long as you exceed the SALT cap.