CA PTET for SMLLC on Form 568

Karl · ‎03-15-2024

I'm trying to verify CA SMLLCs (taxed as a disregarded entity) are PTET eligible.

From FTB, https://www.ftb.ca.gov/file/business/credits/pass-through-entity-elective-tax/help.html it *appears* so.

But Lacerte doesn't appear to let it populate on 568 Page 1 line 4 (and there' no "jump to input"). So I'm trying to figure out if this is a Lacerte limitation or if I'm misunderstanding FTB instructions.

I've tried building the 568 in the Individual Module and the PShip module (which does seem to get me farther, but not all the way).

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abctax55 · ‎03-15-2024

Nope - SMLLC's aren't eligible, unless they elect S-Corp treatment.

HumanKind... Be Both

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Karl · ‎03-15-2024

Thank you, I was spinning in circles on this one.

So I'm trying to figure out why there are PTET lines on Form 568. I don't do PShips, but I know there are different circumstances when a PShip files a 565 vs 568. Is it because the 568 can be used for a PShip in some circumstances?

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abctax55 · ‎03-15-2024

A MMLLC files F 568, a general partnership files F 565.

A California SMLLC also has to file F 568, to pay the $ 800 minimum tax, as well as the LLC fee if the gross receipts are high enough.

HumanKind... Be Both