What is NJ PTE/BAIT

NJ PTE/BAIT

NJ PTE/BAIT is an election that pass through entities (1065 & 1120-S) are able to make which allows them to pay the tax on their distributions through their business instead of personally.

Advantages of Electing PTE/BAIT

By electing NJ PTE/BAIT you are able to deduct the taxes you pay to NJ against your federal income. This allows you to pay less in FICA taxes, and take the state tax deduction on your personal return without worrying about hitting the SALT cap, or whether you are itemizing.

Should you Elect PTE/BAIT

Whether or not you should elect NJ PTE/BAIT depends on your company's structure, business income, and sometimes even your personal tax situation. If you would like to talk about your specific situation please schedule a meeting using the form above.