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Federal partnership return with CA pass through entity tax question

RoamingCPA
Level 3

Have some partners that are participating in the CA PTET and some are not.  I see all the required information on the CA K-1s.  My question is how to specially allocate it to the participating partner on the federal 1065 K-1 for the participating partners only.  When I go to screen 29, where the federal allocations are I don’t see a way to specifically target the PTET amount that is being credited on the CA K-1 to reduce the federal income on the K-1.  Instead of entering the PTET payment in screen 13 as part of the other state taxes paid does it need to be entered in 22.1 as ‘other deduction’ so I can point to it when going into the special allocation screen?

1 Comment 1

I haven't dealt with the situation where some partners elect and some don't so this might not be right.  The federal deduction for the PTE payment is not specifically allocated. It seems logical that every partner gets a benefit from it.