Pass-Through Entity Taxation: TIR 2023-01 and Proposed Temp. Rules

Act 50, Session Laws of Hawaii 2023, introduced an election for partnerships and S corporations.  By making the election, state tax is paid at the entity level rather than by the shareholders or owners, so as to get around the federal $10,000 limit on deductibility of State taxes.

The Department of Taxation issued Tax Information Release 2023-01 together with proposed temporary administrative rules.

The Foundation has responded with technical comments.

(We’ll add more news as we get it.)