More to this than I first thought.

Diagnostic says that the CA PEET "has been computed on some of the shareholders and will need to be taken as a deduction on the Federal return. As a result, the K-1s for all the shareholders will be getting a portion of this deduction reflected through ordinary income or rental income."

The deduction is in 2022 and will be taken next year.  

What does this mean?

I'm going to extend this tax return because LC needs to repair it.  And I know the PTE payment to make so it is not urgent.