How to enter New Mexico PTE in Lacerte

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:

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.

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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.

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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.

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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.

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