On the 2025 1065 Form 8825, the line for "Taxes" has changed to "Real Estate Taxes". Prior to 2025, I was including the property taxes, California LLC Tax, and any California PTE Tax on the "Taxes" line and then using the "State Amounts (if different)" to remove the California state taxes from the California 8825. Then on the M-1, I would enter the CA LLC Tax + CA PTE Tax on the line "State Tax" under non-deductible expenses. I would be in balance for both Fed and State.

Now with the changes to the 8825, I'm trying to find a workaround since I no longer feel comfortable entering the State taxes on the "Real Estate Taxes" line. If I enter the state income taxes on the line "Other expenses", how can I properly remove the expense on the California 8825? I do not want to enter the expense as an ordinary deduction on Page 1 of the 1065 and I'd like to avoid using Line 13e to separately state the income tax deduction.

I know it's still very early in the year, but it would be great if Lacerte can reorganize the 8825 input and include a separate line for "Taxes" and "Real Estate Taxes" on the 8825 input and then we can continue to use the State Amount (if different) box to remove the state income tax from the California 8825.