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Lynch Marini 2023 Peer Review

Posted on by Alan Blume

To Lynch Marini & Associates, Inc. and the Peer Review Committee of the Massachusetts Society of CPAs: We have reviewed the system of quality control for the accounting and auditing practice of Lynch Marini & Associates, Inc. in effect for the year ended April 30, 2023. Our peer review was conducted in accordance with the Standards for Performing and Reporting on Peer Reviews established by the Peer Review Board of the American Institute of Certified Public Accountants (Standards). In our opinion, the system of quality control for the accounting and auditing practice of Lynch Marini & Associates, Inc. in effect for the year ended April 30, 2023 has been suitably designed and complied with to provide the firm with reasonable assurance of performing and reporting in conformity with applicable professional standards in all material respects. Firms can receive a rating of pass, pass with deficiency (ies) or fail. Lynch Marini & Associates, Inc. has received a peer review rating of pass.

Lynch Marini 2023 Peer Review

 

Tax Notice for Pass-Through LLC, Sub-S and Partnerships

Posted on by alan blume

On September 30, 2021, the Massachusetts Legislature adopted an elective pass-through entity (PTE) excise tax in response to the $10,000 cap on the federal state and local tax (SALT) deduction added in the (federal) Tax Cuts and Jobs Act of 2017.  This change may be advantageous to many of our clients.

Income Tax deductions for Pass-Through LLC, Sub-S (S Corps) and Partnerships

If a pass-through entity pays the Massachusetts income taxes that the partner/member or owner will normally have to pay, then that entity receives a federal tax deduction, and the partner/member or owner receives a 90% credit for the amount paid.

Example:

Sub S owner made $100,000
Massachusetts income taxes due is $5,000

If the Sub S pays the $5,000 then the income from the Sub S changes to $95,000 for federal but $100,000 for Massachusetts.

Now the owner has a Massachusetts tax liability of $5,000 ($100,000 of income times 5% or $5,000).  However, the owner now receives a credit of 90% of the amount paid or $4,500 ($5,000 taxes paid times 90%).

The result is that the owner receives a federal tax deduction of $5,000 which prior to this law enactment, the owner would not receive since there was a limitation of the State and Local Income Tax. 

Who should use this method?

  • Those pass-through entities that are LLC, Sub-S or Partnerships
  • Those owners that have more than $10,000 of State and Local Income Tax
  • Those owners that use itemize deductions, not the standard deduction

If you would like us to review your specific situation, please let contact us here https://lynchmarini.com/contact or Tony Marini (508) 650-0018 or Rob Lynch (781) 871-5850.