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How to enter New Mexico PTE in Lacerte

SOLVEDby Intuit3Updated 1 month ago

This article will help you report the New Mexico elective pass-through entity tax (sometimes called PTE, PTET, or SALT workaround) and the resulting credit in Lacerte.

Select your tax type:

IndividualPartnershipCorporateFiduciaryTax year 2022

What's new for tax year 2023?

  • Starting with tax year 2023, pass-through withholding will no longer be reported on the RPD-41367, PTW-D Pass-through Entity Withholding Detail Report. This form has been retired. Withholding tax from distributions to owners is now reported directly on the Form PTE on schedule PTE-D, Detail of Owner Withholding, Composite Tax and Entity-level tax.
  • In addition, a separate section of the tax return has been created for those electing to file entity-level tax. House Bill 368 passed in the 2023 regular session created new provisions for the determination of net income for an entity electing to file entity-level tax. This amount is calculated in a different manner than net income for withholding.

Individual

  1. Go to Screen 51.251, New Mexico Modifications.
  2. Under the New Mexico Additions section enter the Tax paid by a Pass-Through-Entity on distributed net income.
    • This amount flows to PIT-ADJ, line 5.

Back to Table of ContentsPCG_ASSET_spacer_11px.pngA black and white photo of a street light.

Partnership

To activate the PTE calculation:

  1. Go to Screen 37.251, New Mexico Miscellaneous Information.
  2. Check the Elect to file and pay entity-level tax checkbox.
  3. The Entity Level Tax will now show on the NM PTE Page 2, line 29.
  4. Each partners potion will show on the Ptr. Summary line 3 and the RPD-41359.

To mark a partner as not subject to Entity-Level Tax:

  1. Go to Screen 7, Partner Information.
  2. From the Partners section select the partner that is not subject to Entity-Level Tax.
  3. From the Sections select New Mexico Information.
  4. Check the Not Subject to Entity-Level Tax checkbox.
  5. This will suppress the Ptr Summary line 3 and RPD-41359.

Back to Table of ContentsPCG_ASSET_spacer_11px.pngA black and white photo of a street light.

S-Corporation

To activate the PTE calculation:

  1. Go to Screen 42.251, New Mexico Miscellaneous Information.
  2. Check the Elect to file and pay entity-level tax checkbox.
  3. The Entity Level Tax will now show on the NM S-Corp-1, Page 2, line 27.
  4. Each shareholders potion will show on the S/H Smry at the top and RPD-41359.

To mark a shareholder as not subject to Entity-Level Tax:

  1. Go to Screen 5, Shareholder Information.
  2. From the Shareholder section select the shareholder that is not subject to Entity-Level Tax.
  3. From the Sections select New Mexico Information.
  4. Check the Not Subject to Entity-Level Tax checkbox.
  5. This will suppress the S/H Smry Entity Level Tax and RPD-41359.

Back to Table of ContentsPCG_ASSET_spacer_11px.pngA black and white photo of a street light.

Fiduciary

To activate the PTE calculation:

  1. Go to Screen 2.1, Miscellaneous Information.
  2. From the Sections select New Mexico Miscellaneous.
  3. Check the Elect to file and pay entity-level tax checkbox.
  4. The Entity Level Tax will now show on the Fid-1 line, page 2, line 26.
  5. Each beneficiary potion will show on the Bene Info on line 6 and RPD-41359.

To mark a beneficiary as not subject to Entity-Level Tax:

  1. Go to Screen 6, Beneficiary / Grantor Information.
  2. From the Beneficiary section select the beneficiary that is not subject to Entity-Level Tax.
  3. From the Sections select New Mexico Information.
  4. Check the Not Subject to Entity-Level Tax checkbox.
  5. This will suppress the Bene Info on line 6 and RPD-41359.

Back to Table of ContentsPCG_ASSET_spacer_11px.pngA black and white photo of a street light.

What's new for tax year 2022?

  • Pass-through entities doing business in the state must file a New Mexico Information Return for Pass-Through Entities (Form PTE).
    • This requirement includes entities registered to do business in the state, transacting business in, into or from the state, or receiving any income from property or employment within the state, and includes any partnership, joint venture, common trust fund, limited association, pool or working agreement, limited liability company or any other combination of persons or interests required to file a federal partnership return.

Individual

  1. Go to Screen 51.251, New Mexico Modifications.
  2. Under the New Mexico Subtractions section, enter the amount in the Exemption for net income subject to the entity level tax field.
    • This amount flows to PIT-ADJ, line 25.

Partnership

Residents

The RPD-41367 and Ptr. Summary generate automatically for resident partners, and flows to line 12 of RPD-41367.

Nonresidents

Go to Screen 7, Partner Information and under the New Mexico Information section, check the Entity Level Tax box. This will generate the RPD-41337 and Ptr. Summary.

S-Corporation

Go to Screen 5, Shareholder Information and under the New Mexico Information section, check the Entity Level Tax box. This will generate the RPD-41367 and populate line 12 of Schedule A, page 2.

Fiduciary

Go to Screen 6, Beneficiary/Grantor Information and under the New Mexico Information section, check the Entity Level Tax box. This will flow the beneficiary's share to line 12 of FID-D, page 2.

Back to Table of ContentsPCG_ASSET_spacer_11px.pngA black and white photo of a street light.

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