How to enter South Carolina 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.

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.

Table of contents:

Individual

1. Go to Screen 20.
2. Under Passthrough K-1's in the upper left panel, select Partnership Information or S Corporation Information depending on the entity type.
3. From the Sections list, select the South Carolina Active Trade or Business Amounts section.
4. Enter the information received from the I-435.
5. Check the box for Tax paid at entity level
6. Review the calculation on Form I-335. Any amounts taxed at the entity level will reduce the taxes paid, and any remaining tax will show on the SC1040 Page 2, line 8.

Back to Table of Contents

Partnership

1. Go to State & Local, Other Forms then South Carolina Form I-345 to open Screen 43.332 South Carolina Form I-435
2. Check the Elect to have active trade or business inc, taxed at 3% flat rate (MANDATORY) box.
3. In the other fields available, enter the amount of that line item that is attributed to SC active trade or business amounts. These are the amounts that will be taxed at the 3% rate.
4. Review the I-435

Back to Table of Contents

S-Corporation

1. Go to State & Local, Taxes then South Carolina Taxes to open Screen 48.331 South Taxes
2. From the Sections list, select Active Trade or Business Income for Electing S Corporations (I-435)
3. Check the Elect to have active trade or business inc, taxed at 3% flat rate (MANDATORY) box.
4. In the other fields available, enter the amount of that line item that is attributed to SC active trade or business amounts. These are the amounts that will be taxed at the 3% rate.
5. Review the I-435

Back to Table of Contents