2023 Maryland Form 511 PTE

[dsocpa]

Working on a fiscal year S corp with some out of state income (non-operational).  Thought I would use the apportionment factor method of allocation but subsequently determined separate accounting was more appropriate.  I removed all information entered on Schedule A, page 4 of the Form 511 and entered the out of state income on line 3a page 1.  No matter what I do I still get error messages to enter amounts on the schedule A line 1g Other income.  I've tried entering 0 in column 1, edit/delete line - none of these steps have resolved the error.  Anyone have this issue?  It seems to me to be a bug in the program which means I'll need to contact support (ugh!).

[sjrcpa]

Have you read the MD Apportionment instructions?

Are you sure you can use allocation instead of apportionment?

[dsocpa]

Yes, of course they are clear as mud so to speak. I reviewed the Tax General Article below:

• 10-402(c) Determination by Separate Accounting — For corporation.

• (c)(1) Except as provided in subsection (d) or (e) of this section, the part of the corporation’s Maryland modified income derived from or reasonably attributable to trade or business carried on in the State may be determined by separate accounting if practicable.

 This is my first foray into the multi-state non-Maryland nonbusiness/nonoperational income experience. Background, a CO corporation does 100% of it's operational business in Maryland - with a physical Maryland address.  2024 had income from investments in the state of AZ (shareholder's residence state).  The Maryland and nonMaryland/nonbusiness income can be specifically identified on the S corp books.