How to enter Louisiana PTE in Lacerte

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

Table of contents:

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Table of contents:

To claim the credit on an 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.

To generate the PTE for a Partnership

1. Go to Screen 37, Miscellaneous Information.
2. Use the top left panel to select Screen 37.031, Lousiana Miscellaneous Information
3. Scroll down or use the bottom left panel to select the Electing Pass-Through Entity Tax section.
4. 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.
5. Fill out all relevant information in the fields for Interest on late filing, Penalty on late filing, and Penalty on late payment.
6. 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: ref. 53810.

To generate the PTE for a S corporation

1. Go to Screen 42, Miscellaneous.
2. Use the top left panel to navigate to Screen 42.031, Lousiana Miscellaneous
3. Scroll down or use the bottom left panel to select Electing Pass-Through Entity Tax.
4. Check the box for Electing PTE.
   • This will trigger the R-6981 and R-6982.
5. 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: ref. 53809.

For more PTE resources, check out our dedicated Tax topics page where you'll find a list of all PTE states and the respective content for each.