Beating the August Heat: Prepping the Fall & Winter Greenhouse

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August in Alabama is notoriously hot, but if you want a thriving fall and winter harvest, right now is exactly when you need to start getting your hands dirty. Having a greenhouse is a huge advantage for extending the growing season, so I am rolling up my sleeves this weekend to get the fall crop preparation underway. Here is a look at what is going into the dirt this weekend, what is on the schedule for later this fall, and the long game for spring. 🌱 What I’m Planting This Weekend The planting window is perfectly timed right now, so these are the priority seeds going into the setup: Baby Broccoli: I just picked up these seeds, and they are going straight into the dirt! The window for broccoli closes by mid-August, and it is well-suited for direct seeding into the soil rather than using transplants. Spinach: The window also closes by mid-August. Because spinach has shallow roots, these seeds are going straight into the vertical stackable planters. Leaf Lettuce: Perfect for plantin...
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Should You Elect PTET for Your S-Corp?

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πŸ’‘ Should You Elect PTET for Your S-Corp?

Pass-Through Entity Tax (PTET) is a strategic state-level workaround to bypass the $10,000 SALT deduction cap on your federal return. It lets your S-Corp pay state income tax at the entity level, turning a limited personal deduction into a full business expense. Here's how to evaluate if it’s right for you:

✅ Step-by-Step PTET Decision Checklist

❓ Question

✔️ Consider This

Does your state allow PTET?

Over 30 states offer PTET elections—check your state rules.

Do you owe significant state income taxes?

PTET is most valuable if your state tax exceeds $10,000.

Are all shareholders residents of the state?

Nonresident shareholders may disqualify or complicate election.

Does your business qualify (not SSTB)?

Some states or new laws may exclude service-based entities.

Are you set up for entity-level payments?

You must file, pay, and record PTET correctly through the S-Corp.

Are you ready to track PTET credits?

Owners receive credits or deductions on personal returns.

🧾 PTET Election Process

Here’s how to initiate PTET if it fits your strategy:

  1. Review State PTET Guidelines
    Find your state's election forms and filing deadlines.
  2. File the Election on Time
    Some states require it before year-end; others allow it on tax returns.
  3. Make Estimated PTET Payments
    States often require quarterly estimated tax payments under PTET.
  4. Record the Payment as an Expense
    Use an account like “State Income Tax Expense – PTET” on your books.
  5. Report Pass-Through Income After PTET
    Shareholders get K-1s with adjusted net income.
  6. Claim PTET Credit Personally
    Owners may need to file a state credit form to recoup tax paid on their behalf.

✨ Pro Tips for CPAs and Planners

  • Pair this checklist with a journal entry cheat sheet.
  • Track deadlines across states in a monthly tax calendar.
  • Include PTET in year-end tax strategy sessions with clients.

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