Divorce Proceedings

SALT Parity Act: What You Need to Know

Missouri recently enacted House Bill No. (HB) 2400, which includes a section called the “SALT Parity Act.” This Act allows pass-through entities (s-corporations and partnerships) to make an election to be subject to Missouri income tax at the entity level rather than the individual owners paying their share of the state tax on their MO-1040 tax return. Making the election would allow the pass-through entity to deduct the state income tax paid without being subject to the federal $10,000 state and local tax itemized deduction limit on the owners’ Form 1040 tax returns.  The election is to be available for tax years ending on or after December 31, 2022. 

KPM is monitoring the bill and watching for further details regarding the specifics of the election and implementation guidance. If you have questions connect with your KPM advisor or contact us below.

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