Sen. Win Stoller (R-Germantown Hills) | Photo Courtesy of Win Stoller
Sen. Win Stoller (R-Germantown Hills) | Photo Courtesy of Win Stoller
State Sen. Win Stoller (R-Peoria) is keeping his constituents informed about tax guidance now being offered by the Illinois Department of Revenue in light of the SALT (state and local tax) deduction bill he sponsored that recently became law.
“The Illinois Department of Revenue recently published guidance on how pass-through entities in our state can take advantage of my SALT deduction bill that became law last year,” Stoller recently posted on Facebook.
The Illinois Revenue Department defines a pass-through entity as “any entity treated as a partnership, S corporation, or fiduciary for federal income tax purposes,” while pass-through income is the income that partnerships, S corporations, or fiduciaries pass through to their members.
Earlier this year, the Illinois legislature passed S.B. 2531, which includes a pass-through entity (PTE) tax that allows a workaround to the federal $10,000 limitation for state and local tax (SALT) deductions. The measure was formally signed into law by Gov. J.B. Pritzker back in August.
The "SALT cap," does not limit deductibility of state taxes imposed on business entities. As a result, a growing number of states have instituted new entity-level taxes on PTEs that are meant to allow the entity to subtract state income taxes that the individual owners would have otherwise been unable to deduct under the SALT cap.