CA SB 113 Changed Minimum tax requirement

Forum|Forum|4 years ago
February 21, 2022
2 replies
13 views

California passed SB 113 which removed the minimum tax requirement for the passthrough entity tax credit. It appears to me that Lacerte has not made that change yet. There is no worksheet with the calculation of the PTET credit so I'm not sure if something else is causing it to be limited. Anybody else know for sure?

Lacerte Tax

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teamcpa

Level 2

Yes, Lacerte has not adjusted to the change and is limiting the PTE credit to the TMT. I forced it by adjusting the AMTI exclusion override on screen 40. It produces an incorrect Schedule P, but at least allows the credit. I have March 1st farmer deadlines and cannot wait until a fix is in by Lacerte. I am hoping for an update before I need to transmit these returns.

willatbirdAuthor

Level 5

Thank you for confirming. I got the note in the software today as well.

I'm thinking we need to lobby congress to make it illegal to change tax law any time after September1st in any year, unless it takes effect for the following tax year.

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amec

Level 5

Lacerte posted a notification in the program last week stating that they would not be updating the schedule P for SB 113 until the FTB updated the instructions for the schedule P.

willatbirdAuthor

Level 5

Yep - it was the next day after this post.

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