CA Pas Through Entity

[Humey]

Partnership

Client paid 26000 on CA form 3804  using 3893 PTE coupon for 2021 in 2022

Therefore as far as i know, the federal taxable income on the K-1 for this partnership should be 26000 less than what is should be for the 2022 tax year.  I don't see 26000 on the lacerte software and Lacerte told me to use the allocation tab to reduce the taxable income for that one partner.  Of course, my allocation is out of balance because of  the 26K.   Is the customer service person out of their mind because that makes no sense.  Tab 37 does have a spot for a  payment voucher 2022 form 3893 and estimated ax voucher form 3893 for 2023.  However this was a  2021 payment for 2022

[sjrcpa]

" Is the customer service person out of their mind"

I wouldn't be surprised.

[Humey]

do you what the real answer is. How do i reflect the payment

[sjrcpa]

Sorry, I do not.

[joshuabarksatlcs]

Partnership

Client paid 26000 on CA form 3804  using 3893 PTE coupon for 2021 in 2022.

Paid in 2022 for 2021 Tax.  Each partner's 2021 CA partnership K-1's should show the respective share of the $26K.

By June 15, 2022.  IF the Partnership elected to continue, $13K would have been paid for 2022.    

Therefore as far as i know, the federal taxable income on the K-1 for this partnership should be 26000 less than what is should be for the 2022 tax year. 

You probably meant to say the 2022 federal tax income should be $26K less than it would have been WITHOUT the PTE tax participation. 

If the partnership had made the $13K payment by June 2022, FOR 2022, the amount would have been $39K.  

I don't see 26000 on the lacerte software

Lacerte does NOT carry over the $26K (paid in 2022 for 2021), or the other $13K (paid in 2022 for 2022) to 2022 federal tax return.  The deduction on the federal partnership return has to be entered on Screen 13, Deductions under Taxes - State Tax.  The deduction would be backed out on the 2022 state tax return.

and Lacerte told me to use the allocation tab to reduce the taxable income for that one partner. 

Did you mean only ONE partner paid the tax?  I have not dealt with this situation.  I told my clients if they don't go all or none, my fees would be at least $X,000 more. 

My partnership clients all went with "all or none".

However, I imagine if only one or some partners participated (thus only some of them had the credit on line 15f of CA K-1) ,there would be a special income allocation for the federal net income.    

Of course, my allocation is out of balance because of  the 26K.

I wonder why...  The partnership is out $26K, deductible on the federal return.  Perhaps the partner(s) paid out of the partnership with their own funds.  If so, wouldn't there be a capital contribution by the partner and with the special allocation to the partner(s), wouldn't it balance out? 

Or am I (or Joshua) barking at the wrong tree?

Again, I haven't done it because all my partnerships went "all or none".

Is the customer service person out of their mind because that makes no sense. 

I'd go with Rule Number One and Number Two on this:   

Rule #1: @sjrcpa  is always right.

Rule #2: See Rule #1.

Tab 37 does have a spot for a  payment voucher 2022 form 3893 and estimated ax voucher form 3893 for 2023. 

Yes, check the box if "Every qualified partner wants to elect to file PTE tax calculation".  If you check the box, Lacerte computes 2022 F3804 total payment which would flow to the 2022 K-1.  You enter the amount paid as an estimated in 2022 ($13K in my example) and Lacerte computes the balance to be paid with 2022 F3893 PMT.  2023 F3893 (ES) would be generated - the default amount 50% of the Line 3 on 2022 F3803.

If only some of the partners participate, do the pro-rata computation and enter info on Screen 32.1 under CA Misc "Pass-thru entity elective tax calculation form 3804 allocation.  This is where my quote of $X,000 extra fee comes in.

However this was a  2021 payment for 2022

You meant to say "this was a 2022 payments for 2021 FTE???  

[joshuabarksatlcs]

Meant to say:

2023 F3893 (ES) would be generated - the default amount IS 50% of the Line 3 on 2022 F3804.

Joshua was licking on my face when I typed that.  Hard to type while being licked.