| ID | Status | Date | Public/Private | Industry | AHACPA Contact |
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| #15136 | Closed | public | _General | Les Sparks |
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Hi Les, We have several clients that are passthrough entities that are now paying taxes at the state level due to changes in tax laws designed to allow the owners to get a deduction on their federal return for state taxes paid. We were discussing internally whether the tax payments should be subject to surplus cash limitations and wanted to get your thoughts. Thanks, Alan Stein |
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Generally, for a tax to be payable from operating funds it must be a tax on project profits or something else focused on the project and not the partners. Any tax focused on the partners is payable from surplus cash only. I have only found 1-2 instances where these state taxes can actually be paid from project funds.
Les Sparks AHACPA (801) 547-0809
From: AHACPA Support <support@ahacpa.org> |