56636
A California Passthrough Entity Elective Tax has been computed for some of the partners and a taxes deduction will need to be taken on the Federal return. As a result, the K-1s for all the partners will be getting a portion of this deduction reflected through ordinary income from trade/business or rental income. Please use the Federal K-1 special allocation input screen to allocate the deduction to the partners that elected to participate.
Solution: If only some of the partners are electing the CA PTET, the tax deduction on the federal return will be included on all partners' K-1s. To correct this so that only the participating partners get the deduction, a special allocation is needed so that only the participating members of the CA PTET will get the deduction on his/hers K-1s. This can be done in screen 29, Special Allocations.
Even though this diagnostic is critical, it will not prevent the e-filing of the return.
