Freight Brokerage & 3PL Partnership (Form 1065): 2026 $40,000 SALT Cap vs. State PTET Election Calculator

For a Freight Brokerage & 3PL Partnership (Form 1065) filing IRS Form 1065 with $430,000 in pass-through income and $560,000 in household MAGI, electing state Pass-Through Entity Tax (PTET) under IRS Notice 2020-75 converts nondeductible personal SALT into a 100% deductible IRC § 162 business expense, bypassing both the $40,000 SALT cap and the 30% MAGI phase-out between $500,000 and $600,000.

Open Freight Brokerage & 3PL Partnership (Form 1065) 2026 PTET Calculator

Why Freight Brokerage & 3PL Partnership (Form 1065) Owners Still Need State PTET in 2026

• Escapes the $500k-$600k MAGI SALT Torpedo: Under Public Law 119-21 (§ 70120), the $40,000 SALT cap phases down by 30% above $500,000 MAGI back to $10,000 at $600,000 MAGI. Entity PTET has zero dollar cap and zero MAGI phase-out.
• Preserves the $32,200 MFJ Standard Deduction: Deducting state income taxes on Form 1065 Line 12/14 allows owners to claim the full $32,200 MFJ standard deduction (or dedicate their personal SALT cap exclusively to home property taxes).
• Reduces Self-Employment Tax (Form 1065) & AGI: For active general partners / LLC members, an entity-level Form 1065 PTET deduction reduces ordinary business income before Self-Employment tax and lowers AGI for Section 199A QBI thresholds.