How to enter Louisiana PTE in Lacerte

This article will help you generate the Louisiana elective pass-through entity tax in Lacerte, print an election form to email to the state, and enter income excluded by the election in an individual (1040) return.

Partnership

1. Go to Screen 37, LA Miscellaneous Information.
2. Scroll down to the Electing Pass-Through Entity Tax section.
3. Check the box for Electing PTE.
   • This will switch the main return from form IT-565 to CIFT-620, and calculate the R-6981 and R-6982.
4. If needed, check the box for Print PTE election Form R-6980.
   • The completed election form must be submitted by email to Section732.2election@la.gov, and isn't transmitted when you e-file the return. We'll generate a critical diagnostic to remind you.

S corporation

1. Go to Screen 42, LA Miscellaneous.
2. Scroll down to the Electing Pass-Through Entity Tax section.
3. Check the box for Electing PTE.
   • This will trigger the R-6981 and R-6982.
4. If needed, check the box for Print PTE election Form R-6980.
   • The completed election form must be submitted by email to Section732.2election@la.gov, and isn't transmitted when you e-file the return. We'll generate a critical diagnostic to remind you.

Individual

Individuals who receive an R-6981 from a partnership or S-corp will need to exclude K-1 income from their Louisiana return that was included in federal AGI.

To enter the excluded income:

1. Go to Screen 51, LA Modifications.
2. Enter the amount of excluded income in Pass-through entity exclusion.

The program will generate an exemption on the IT-540-2D, Schedule E, with code 24E.

We don't recommend using the State, if different or State source amount columns of the K-1 input if the reason for the difference is this exclusion, since the program won't know the correct exemption code to use from that screen.