PTE TAX CREDIT

[HOPE2]

 Hi to community. For S-Corp, if I want to apply PTE tax for year 2024 should I elect  it for along with 2023 tax return when it will be filed before March 15 2024?

Any help would be greatly appreciated it.

[abctax55]

What state? That's an important piece of info.

[HOPE2]

Thanks @abctax55 

In California.

[abctax55]

For 2023 returns, the "election" had to be done by making a payment by 11.15.23 (extended from 6.15. - the normal date).  If that was NOT done, the opportunity for 2023 is not available.  Period.  Full stop. The FTB offers no waiver or relief.

For 2024 returns, the "election" will need to be made by 6.15.2024 (absolute date, baring any disaster declaration) by making the required payment.

I *strongly* suggest you sign up for Spidell's (catax.com) message board for Ca information.

As to 'should' this be done for your client - that is dependent on many, many things.  Spidell offers numerous webinars on PTET; I took several of them when this SALT bypass option became available.

[HOPE2]

@abctax55 thanks a lot. May I was not able to express my question, it is:  If client wants to elect PTE for 2024 calendar year, should I make this election while I am completing with 2023 tax return to figure out payment 1 and payment 2 how much will be then they will be paid on due dates? right?

Also I need your help when FTB says regarding PTE:

Do you qualify?

A qualifying PTE is an entity taxed as a partnership or S corporation.

Who does not qualify?

A qualified PTE does not include:

• Publicly traded partnerships
• An entity permitted or required to be in a combined reporting group

Who is a qualified taxpayer?

A qualified taxpayer is a partner, member, or shareholder of an electing qualified entity that is:

• An individual, fiduciary, estate, or trust subject to California personal income tax
• A disregarded single member LLC that is owned by an individual, fiduciary, estate, or trust subject to California personal income tax

I am confused for interpretation of above part that says who is a qualified taxpayer, does it mean for example shareholder of an S-Corp can be a LLC single members or what else?

Thanks for help

[abctax55]

If you are not able to read/understand the instructions you posted, I strongly suggest:

1) A CPE class on the topic (Spidell has 'em, so does CPAacademy).  I took several classes when this was first available to be able to understand the nuances.

2) A local mentor

[HOPE2]

Thanks. This community is very helpful for me and I asked my question from this community to help me 

[abctax55]

I understand that.  BUT, the ability to read the instructions & translate them into action is critical to being a competent tax pro.  As is continuing education - I took multiple classes on this.  Relying on anonymous folks in an on-line, public forum isn't the way to go, especially for an topic this complicated.

HAVE you gone to the Spidell website, to their 'message board' and read the threads on PTET?  You do have to sign up, but the message board is free once you do.

[IRonMaN]

"I asked my question from this community to help me"

But the community can only do so much.  Everybody here is a volunteer and nobody has the time to spoon feed folks every step of the way.  Sometimes you need to leave the nest and learn to fly on your own. 

[HOPE2]

 let me know what kind of question you would like to be asked. I have a thousand question in my mind 

Please just let me know in what field of tax law are you ok to ask you I would be glad to hear from you since I am new.

Thanks

[IRonMaN]

Congratulations, I see today is your one year anniversary of you posting on this site.  So, you have been here a year now, so I don't think you technically qualify to be considered new.  As far as questions to ask, ask one of your thousands that you have in mind.  Be specific and be happy with whatever answer someone provides to you rather than keep circling around the same question again and again.  

Like I said above, we are all volunteers and like to help folks, but it gets tiring when you never seem to be able to accept an answer provided to you.

[HOPE2]

Whenever I got my answer sure I have to accept it is the best token of appreciation, also my problem is English is my second language and I have been learning it during this 4 years in the U.S. I entered here when some of you guys or anyone use irony or like that to be honest hard to understand may some of question like this PTE is because of this problem, sorry about that. But if your reply will be since English is not my native language and I have to leave this community I can get out no worries.

[IRonMaN]

Nobody told you to leave.  But in fairness to your clients you need to be able to accept that if you are not understanding some things, you shouldn’t accept that client.  Stick to basics until you can grasp more complex areas.  Nobody here knows everything but most of us know when we are not operating in a comfort area and need to refer the client elsewhere.

[abctax55]

English being your second language does somewhat explain why reading the instructions/law may not be helpful.

However, if you can't comprehend the law/instructions/the answers provided here because of that, then you are doing your clients a major disservice.  And you stated elsewhere you don't carry E&O insurance.  Some of the potential mistakes due to not fully understanding/comprehending might be very costly.

None of us are trying to be mean to you; we all had to learn.   But on some of this, you need more help than can be provided by random folks in an on-line forum.

[HOPE2]

Thanks. I do not know how to thank you since you follow me in any thread. 

This is you learnt me in most of the thread which I created: no one knows anything's here!

Thanks again. 

[HOPE2]

Thanks@abctax55. You are always helpful. I did not know E&O ever( I thought it is for Notary and accountant.. ) while 1040-X is alive , but thanks community yesterday I took it.

I used to be a teacher.

The way people ask a question  in two manner:

in the world

1- no reading just promptly ask a question and may someone nice answer them or lead them to read that ...

2- They read already but try to find the answer , I am from group 2