Every major tax strategy is just the government's way of paying you to behave in a certain way—provide housing, hire people, save for retirement, or structure your business cleanly.
PTET Workaround is designed for situations like yours—high income, real dollars at stake, and enough complexity that a generic tax return won't cut it.
The "SALT Cap" limits your personal state tax deduction to $40,000 ($20,000 MFS) under OBBBA, but this cap phases down for taxpayers with MAGI above $500,000 and cannot exceed what you actually owe. The Pass-Through Entity Tax (PTET) allows your business to pay state income tax on your behalf with no cap at all, turning a capped personal expense into a fully deductible business expense. This is especially valuable for high-income taxpayers whose SALT cap phases down, and for anyone wanting to deduct more than $40,000 in state taxes.
This strategy gets thrown around online as a magic bullet. The reality: the IRS is very specific about who qualifies, what documentation is needed, and how it must be reported.
Most of the messes we clean up come from half-implemented versions—no logs, no elections, no support—and big deductions that fall apart under scrutiny.
We don't treat this as a party trick. We treat it as an engineering project: understand your situation, model the numbers, then build a checklist so every requirement is met intentionally.
That includes time logs, elections, entity structure, coordination with attorneys or cost segregation firms when needed, and clear expectations for how the strategy evolves over time.